Trade allows the people of a country to consume outside their production possibility curve.
Answer the following statement true (T) or false (F)
True
You might also like to view...
If the dollars-per-euro spot rate is 0.7750 and the 3 month forward rate is 0.7800, what is the amount of the standard forward discount or premium?
A) 2.58% B) 2.56% C) 7.69% D) 7.74%
Markets tend to overallocate resources to the production of a good when
A) there are negative externalities. B) there are positive externalities. C) there are public goods produced. D) equilibrium occurs.
What happens when the interest rate on newly issued bonds increases?
a. The price of previously issued bonds with the lower rate decreases but still is higher than its face value. b. The price of previously issued bonds with the lower rate does not change as the face value has not changed. c. The price of previously issued bonds with the lower rate decreases to less than its face value. d. The price of previously issued bonds with the lower rate increases to more than its face value.
Real GDP is:
a) the nominal value of all goods and services produced in the economy. b) the nominal value of all goods and services produced in the domestic economy corrected for inflation or deflation. c) that aggregate output that is produced when the economy is operating at full employment. d) always greater than nominal GDP.