Refer to the tables. If North Cantina is producing at production alternative B, the opportunity cost of the eleventh unit of consumer goods will be:
Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina:
A. 10 units of capital goods.
B. 1 / 4 of a unit of capital goods.
C. 8 units of capital goods.
D. 1 / 8 of a unit of capital goods.
D. 1 / 8 of a unit of capital goods.
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Real business cycle theory explains changes in employment and output by focusing on
A) changes in fiscal policy. B) real supply-side factors. C) the interaction of fiscal and monetary policies. D) changes in monetary policy.
For the following question, assume the following facts:
(1 ) Chase (which is located in the United States) has a 20% reserve requirement imposed by the government. (2 ) Bank of Germany has no reserve requirements. (3 ) Both banks may invest at an 8% interest rate. (4 ) Both banks have fixed costs of $3 per deposit made. What is the difference between the minimum interest rates each bank can offer and still make a profit if the deposit is $500 for 1 year? A) 0 - Both banks can offer the same rate. B) 1% C) 1.6% D) 0.4% E) 20%
To build growth into its economy, a less-developed country must not
a. invest in education because the fruits of that investment is long run b. focus on the infrastructure that has been its problem c. shift resources out of the production of consumtion goods and into the production of capital goods because a healthy worker is a productive worker d. shift resources out of the production of capital goods and into the production of consumption goods because they need capital to increase labor productivity e. engage in curbing population because more workers means more output
Just under half of the people in the world who live in extreme poverty live in China and India combined.
Answer the following statement true (T) or false (F)