Any point on a country's production possibilities frontier represents a combination of two goods that an economy
a. will never be able to produce.
b. can produce using all available resources and technology.
c. can produce using some portion, but not all, of its resources and technology.
d. may be able to produce in the future with more resources and/or superior technology.
b
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All of the following are functions of the Federal Reserve System EXCEPT
A) to provide loans to developing countries. B) to act as the government's fiscal agent. C) to supply the economy with fiduciary currency. D) to hold depository institutions' reserves.
If a country has a current account balance of $100 billion and the official settlements account balance is zero, then the country's capital and financial account balance must be
A) negative but not necessarily equal to -$100 billion. B) equal to -$100 billion. C) equal to $100 billion. D) positive but not necessarily equal to $100 billion. E) zero.
An increase in the price of wheat futures will tend to cause
A) a decrease in current wheat consumption. B) an increase in short-selling of wheat. C) a shortage of wheat in the future. D) a surplus of wheat in the future.
A new discovery makes ink jet computer printers less expensive to produce. At the same time another type of computer printer, the laser printer, also becomes less expensive. What would you expect to happen to the equilibrium price and quantity of ink jet printers?
A. Equilibrium price will rise, but the effect on quantity is uncertain. B. Equilibrium quantity will rise, but the effect on price is uncertain. C. Equilibrium price will fall, but the effect on quantity is uncertain. D. The answer cannot be determined from the information given above.