An economy's production possibility curve will be a straight line if:
a. resources are not equally substitutable among productive tasks
b. the economy experiences significant unemployment.
c. the opportunity cost of production of a good decreases as more of it is produced.
d. the opportunity cost of production of a good is constant as more of it is produced.
d
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In the case of a domestic monetary shock, floating exchange rates
A) make the home economy less vulnerable. B) make the home economy more vulnerable. C) make the foreign economy more vulnerable. D) would not affect the foreign economy. E) would not affect the home economy.
The trend in the mortgage-backed securities (MBS) market in the early 2000s was toward more
A) subprime mortgages. B) prime mortgages. C) bubble mortgages. D) low-risk mortgages.
Test pilots are paid high wages by airplane makers primarily because
a. the demand for labor in this area is very high relative to the demand for labor in other areas of employment. b. the demand for labor in this area is very low relative to the demand for labor in other areas of employment. c. the demand for labor in this category is highly elastic. d. few people possess the required skills and the occupation is very risky.
You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC: 
Both islands specialize exclusively in the product for which they have a comparative advantage. You have agreed to give 350 coconuts to the other island in exchange for 1,300 fish. After the trade, your island has a total of ________ coconuts and ________ fish.
A. 150; 1,300 B. 500; 1,500 C. 150; 2,800 D. 500; 1,300