In country A the opportunity cost of 1 paper clip is:
If Countries A and B produce only either rubber bands or paper clips, their maximum outputs are shown in the production possibilities schedules below:
A. 2 rubber bands
B. 1 rubber band
C. 1/2 rubber band
D. 1/4 rubber band
C. 1/2 rubber band
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Which of the following is a correct characterization of socialism?
a. Tradition answers the basic economic questions. b. Markets are used exclusively to answer the basic economic questions. c. Central planning is seldom used to answer the basic economic questions. d. Government ownership of many resources and centralized decision-making answers the basic economic questions.
Credit cards are
A. not money. B. not money, because they can't be used to purchase goods and services. C. considered to be money. D. counted as a part of M2 but not M1.
Refer to the graph shown. As a result of the shift from D1 to D2, the value of the dollar will:
A. increase in response to excess demand equal to Q3 - Q1. B. increase in response to excess demand equal to Q4 - Q2. C. decrease in response to excess supply equal to Q4 - Q2. D. decrease in response to excess supply equal to Q3 - Q1.
Inflation targeting is a framework for carrying out monetary policy whereby
A) the central bank adopts a rigid target for inflation and ignores declines in output. B) the central bank commits to achieving a publicly announced level of inflation. C) the central bank commits to achieving a target level of inflation which is never announced publicly. D) the central bank commits to a monetary growth rule.