Suppose we observe the following sequence of production and exchange: sand is used to make silicon; silicon is used to make silicon chips; silicon chips are used to make computers; computers are sold to retailers; retailers sell those computers to
consumers. Which represents the purchase of a final good? A) The retailer's purchase of computers
B) The consumer's purchase of computers
C) Both A and B above.
D) None of the above.
B
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Use the following statements to answer this question: I. Corporate paper rates are typically less than one percent higher than Treasury bill rates. II. Treasury bill rates may be viewed a short-term, risk-free rates
A) I and II are true. B) I is true and II is false C) II is true and I is false D) I and II are false
A famous opera star made $2 million per year. He said he would rather sell insurance if he couldn't make more than $100,000 per year. If he is telling the truth, what's his opportunity cost as an opera star?
A) $2.0 million B) $100,000 C) $1.9 million D) $2.1 million
According to economist Benjamin Friedman, sustained economic growth can make people more willing to work toward improving the environment and reducing poverty
Indicate whether the statement is true or false
In a fixed exchange rate system,
A. A balance-of-payments deficit can be corrected by expansionary fiscal and expansionary monetary policies. B. A country can eliminate a surplus of its currency by eliminating its protectionist barriers to trade. C. The capital account surpluses must offset current account deficits. D. Excess demand for a currency is eliminated by using foreign exchange reserves to increase demand.