According to the possible trade-off example between warships and drinking water in the text, the policy question that should be considered in Malaysia is:
A. Do the opportunity costs of the warships exceed their nominal costs?
B. Do the nominal costs of the warships exceed their real costs?
C. Do the benefits of the warships exceed their opportunity costs?
D. Do the real costs of the warships exceed their nominal costs?
Answer: C
You might also like to view...
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's interest rate rises relative to England and nothing else changes, then the:
a. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market falls, causing an uncertain change in the value of the Swiss franc. b. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc. c. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing an appreciation of the Swiss franc. d. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc. e. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc.
Exhibit 14-7 Aggregate supply and demand curves
?
In Exhibit 14-7, if aggregate demand increases from AD1 to AD2,
A. output and prices will increase. B. output and prices will decrease. C. output alone will increase. D. prices alone will increase.
Which of the following would lead to a rightward shift of the money demand curve?
a. A decrease in the price level b. A decrease in output c. An open market sale of bonds by the Fed d. An increase in the price level e. An open market purchase of bonds by the Fed
Why is the advent of monopoly likely to shift cost curves?
What will be an ideal response?