Someone who earns her living rolling out pizza dough
A) is inefficiently employed if she could shift to another occupation and produce more than the person she replaces.
B) is inefficiently employed if someone else could roll out more dough in less time.
C) thinks she has a comparative advantage in rolling out pizza dough.
D) All of the above are true.
C
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The exchange rate is the price at which the ________ of one country exchanges for the ________ of another country
A) currency; goods B) goods; goods C) currency; currency D) currency; financial instruments
Consider a two-way network with 1,000 users. Adding one additional user to such a network benefits all users by adding:
A. 999,000 potential connections to the network. B. 999 potential connections to the network. C. 1,000 potential connections to the network. D. 2,000 potential connections to the network.
A newspaper story on the effect of higher milk prices on the market for ice cream contained the following:
"As a result [of the increase in milk prices], retail prices for ice cream are up 4 percent from last year. . . . And ice cream consumption is down 3 percent." Source: John Curran, "Ice Cream, They Scream: Milk Fat Costs Drive Up Ice Cream Prices," Associated Press, July 23, 2001. Based on the information given, what is the price elasticity of demand for ice cream? A) 0.75 (in absolute value) B) 1.33 (in absolute value) C) 12% D) We do not have enough information to calculate the elasticity.
The Federal Reserve System regulates the money supply primarily by ________.
A. altering the reserves of commercial banks, largely through sales and purchases of government bonds B. altering the discount rate and thereby the ability of the banks to make loans C. restricting the issuance of Federal Reserve Notes because paper money is the largest portion of the money supply D. altering the reserve requirements of commercial banks and thereby the ability of banks to make loans