The production possibility curves of two countries are given below:LegolandElmolandChocolateTextilesChocolateTextiles3006002020301515302020060030Refer to the production possibility curves of the two countries. Without trade, the most each country could produce would be:
A. 30 chocolate and 30 textiles.
B. 60 chocolate and 60 textiles.
C. 20 chocolate and 20 textiles.
D. 15 chocolate and 15 textiles.
Answer: C
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In January 2013, you can put your savings in a Bank of America account and be paid 2 percent per year. During 2013, suppose the inflation rate is 3.4 percent. In 2013 you earned a real interest rate of
A) 0.59 percent. B) 6.8 percent. C) 1.4 percent. D) -1.4 percent.
Under a system of flexible exchange rates, which of the following would be most likely to cause a nation's currency to appreciate on the foreign exchange market?
a. stable domestic prices while the nation's trading partners are experiencing inflation b. a decrease in domestic interest rates c. an increase in foreign interest rates d. a domestic inflation rate of 10 percent while the nation's trading partners are experiencing stable prices
What happens to your purchasing power if inflation is less than you anticipated?
A. It decreases. B. It increases. C. It devalues your net worth. D. It won't change much.
Refer to the information provided in Figure 13.11 below to answer the question(s) that follow.
Figure 13.11Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. How much surplus is realized by consumers?
A. $0 B. $16,000 C. $32,000 D. Indeterminate from the given information.