Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 Suppose Smith and Jones begin by producing 16 computers and 0 calculators per hour. If they wish to produce 14 computers and 40 calculators per hour efficiently, then Smith should spend ________, and Jones should spend ________.
A. 30 minutes making each; 30 minutes making each
B. 1 hour making computers; 40 minutes making computers and 20 minutes making calculators
C. 1 hour making computers; 20 minutes making computers and 40 minutes making calculators
D. 45 minutes making computers and 15 making calculators; 1 hour making calculators
Answer: B
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Janelle spends all of her income on songs from iTunes ($1 each) and applications ($5 each) for her iTouch. At current prices, she makes her best affordable choice and purchases 20 songs and 4 applications
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All of the following are considered among the four most important determinants in explaining exchange rate fluctuations in the long run except
A) relative rates of productivity growth across countries. B) preferences for domestic and foreign goods. C) tariffs and quotas. D) interest rates.
Buyers will bear the entire burden of a unit tax if the demand curve for a product is
A) upward sloping. B) horizontal. C) downward sloping. D) vertical.
The twelve Federal Reserve Banks can best be characterized as:
A. Central banks, banker's banks, and quasi-public banks B. Regional banks, public banks, and member banks C. Investment banks, banker's banks, and public banks D. National banks, quasi-public banks, and investment banks