The table below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the rest of the world per labor hour. If the United Kingdom and the rest of the world begin to trade with each other, the international price of corn will lie between ________ and ProductivityIn the United KingdomIn the Rest of the WorldUmbrellas per labor hour0.251.00Bushels of corn per labor hour0.500.67
A. 2/3 of an umbrella per bushel of corn; 3/2 umbrellas per bushel of corn.
B. 1/2 of an umbrella per bushel of corn; 3/2 umbrellas per bushel of corn.
C. 2/3 of an umbrella per bushel of corn; three umbrellas per bushel of corn.
D. 3/2 umbrellas per bushel of corn; three umbrellas per bushel of corn.
Answer: B
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In 1935 the basic component of the present-day government-managed insurance program was established. It is known as
a. Medicare b. Medicaid c. Social Security d. AFDC e. food stamps
The U.S. trade deficit is most likely to be harmful in the future if:
A. U.S. citizens refuse to lend to foreigners as a result of it. B. U.S. citizens continue to accumulate foreign assets. C. U.S. production continues to exceed U.S. consumption. D. the inflow of financial capital associated with the current deficit does not finance productive investment.
Other things being equal, an increase in trade restrictions on imports will:
A. increase the demand for foreign currency, causing it to appreciate. B. increase the demand for foreign currency, causing it to depreciate. C. reduce the demand for foreign currency, causing it to depreciate. D. reduce the demand for foreign currency, causing it to appreciate.
A decrease in the price level in the economy leads to:
A. a leftward shift in the demand for money curve. B. a rightward shift in the demand for money curve. C. a leftward movement along the demand for money curve. D. a rightward movement along the demand for money curve.