A straight-line production possibilities curve has
A. a constant opportunity cost between the two goods.
B. an increasing opportunity cost between the two goods.
C. a decreasing opportunity cost between the two goods.
D. no opportunity cost between the two goods.
Answer: A
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Which of the following statements best describes relative inflation?
a. If the country Economia experiences a relatively low inflation rate compared with other economies, then the buying power of its currency is eroding, which will tend to discourage anyone from wanting to acquire or to hold the currency. b. If the country Economia experiences a relatively high inflation rate compared with other economies, then the buying power of its currency is eroding, which will tend to discourage anyone from wanting to acquire or to hold the currency. c. If the country Economia experiences a relatively high inflation rate compared with other economies, then the buying power of its currency is increasing, which will tend to discourage anyone from wanting to acquire or to hold the currency. d. If the country Economia experiences a relatively low inflation rate compared with other economies, then the buying power of its currency is increasing, which will tend to discourage anyone from wanting to acquire or to hold the currency.
Which of the following is a reason why German per capita energy consumption is significantly lower than American per capita energy consumption?
A. German homes tend to be larger. B. Germany is a smaller country. C. German consumers pay hefty fees for overuse of energy. D. German homes have energy-efficient appliances.
If American demand for purchases of British goods has decreased, how would you expect the equilibrium exchange rate in the market for dollars to respond? Support your answer graphically
What will be an ideal response?
Refer to the figure. A weaker economy, characterized by higher unemployment rates, will:
A. reduce MB and increase MC, lowering the optimal quantity of immigrants.
B. increase MB and reduce MC, raising the optimal quantity of immigrants.
C. increase both MB and MC, and the effect on the optimal quantity is uncertain.
D. reduce both MB and MC, and the effect on the optimal quantity is uncertain.