Refer to the above table. Assuming that opportunity costs are constant, the opportunity cost of producing a computer in the United States is equal to ________, and the opportunity cost of producing a computer in Mexico is ________
A) 4 bicycles; 0.5 bicycles
B) 0.25 bicycle; 2 bicycles
C) 2.67 computers; 0.33 bicycles
D) 0.375 bicycle; 3 computers
B
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Which one of the following statements is not true? a. There is an opportunity cost associated with setting a money supply target. b. There is an opportunity cost associated with setting an interest rate target. c. When the Fed targets the money supply, the interest rate moves in an inappropriate direction.` d. The Fed targeted the money supply in the 1980s in order to bring inflation under
control. e. The Fed targeted interest rates in the late 1980s and 1990s in order to stimulate investment and aggregate demand.
Supply-side economics stresses that
a. budget deficits will stimulate demand, output, and employment. b. budget deficits will lead to higher interest rates, which will weaken their expansionary impact. c. an increase in government expenditures financed by higher tax rates will cause real income to rise. d. changes in marginal tax rates exert important effects on real output and employment.
In terms of planning, which of the following is an advantage of the long run over the short run?
a. flexibility b. complexity c. inelasticity d. frequency
Savings banks and savings and loans are regulated by a combination of agencies which includes all of the following except:
A. The Federal Reserve System. B. The Comptroller of the Currency. C. state authorities. D. The Federal Deposit Insurance Corporation.