When the economy is below full employment, it is producing
A. Inside the production possibilities curve.
B. On the production possibilities curve.
C. Beyond the production possibilities curve.
D. None of the choices are correct.
Answer: A
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Assuming r is the interest rate, to compute the present value of a dollar to be received a year from today, you
A) multiply the dollar by r. B) divide the dollar by (1 - r). C) multiply the dollar by (1 + r). D) divide the dollar by (1 + r).
Total surplus
A) is maximized under perfect competition. B) represents the gains from trade to market participants. C) treats consumer and producer surplus equally. D) All of the above.
Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.
Figure 3.16Refer to Figure 3.16. When the economy moves from Point E to Point B, there has been
A. a decrease in supply and an increase in quantity demanded. B. a decrease in supply and an increase in demand. C. an increase in supply and an increase in quantity demanded. D. an increase in both supply and demand.
Describe the main characteristics of direct foreign aid from IAC to DVC.
What will be an ideal response?