The production possibilities curve depicts the various combinations of two goods that can be:
a. interchanged among two countries.
b. produced with a given technology.
c. consumed with a given quantity of resources.
d. produced with increments in resources and changes in technology.
e. consumed as the resources increase.
b
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If the actual reserve/deposit ratio equals 8% and the desired reserve/deposit ratio for this bank is 10%, the bank should:
A. send the extra reserves to the central bank. B. stop making loans. C. make more loans in order to earn interest. D. do nothing because this is a profitable situation.
Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The price paid by buyers with the tax is:
A. $2.00. C. $2.50. D. $2.25.
The difference between the earnings of construction workers who work on bridges and skyscrapers and those who work on highways is most likely due to
a. differences in education requirements. b. differences in unionization rates. c. a compensating differential. d. apprenticeship requirements.
The countries comprising NAFTA are:
A. Canada, the United States, and Puerto Rico. B. the United States, Mexico, and Chile. C. the United States, the United Kingdom, and France. D. Canada, Mexico, and the United States.