If the production possibilities curve is a straight line:
A. the two products will sell at the same market prices.
B. economic resources are perfectly substitutable between the production of the two products.
C. the two products are equally important to consumers.
D. equal quantities of the two products will be produced at each possible point on the curve.
Answer: B
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The __________ gives loans to medium-income, creditworthy countries, and the ________ gives aid to poorer countries.
A. IDA; UNDP B. IDA; IBRD C. IBRD; IDA D. UNDP; IBRD
When an international financial crisis occurs
A. financial flows can slow to a trickle, influencing economic growth. B. there are no serious financial effects that last more than a few months. C. investors sell off bonds and restrict loans as a mechanism to help the country recover. D. financial lenders protect their investments by pouring money into the ailing country.
The diagram concerns supply adjustments to an increase in demand (D 1 to D 2 ) in the immediate market period, the short run, and the long run. Supply curves S 1 , S 2 , and S 3 apply to the:
A. immediate market period, long run, and short run respectively.
B. immediate market period, short run, and long run respectively.
C. long run, short run, and immediate market period respectively.
D. short run, long run, and immediate market period respectively.
If the wage rate is $10 per hour and the rental rate is $5 per hour, then the vertical intercept of the isocost line
a. is $2. b. is 50 cents. c. is $5. d. can not be determined without more information.