Refer to the given information. Which one of the following would not be feasible terms for trade between Singsong and Harmony?
Answer the question on the basis of the following information about the cost ratios for two
products—fish (F) and chicken (C)—in countries Singsong and Harmony. Assume that
production occurs under conditions of constant costs and these are the only two nations in the
world.
Singsong: 1F = 2C
Harmony: 1F = 4C
A. 1 fish for 2½ chicken
B. 1 fish for 3 chicken
C. 1 chicken for 1/5 of a fish
D. 1 chicken for 1/3 of a fish
C. 1 chicken for 1/5 of a fish
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People in the U.S. will rarely pay a great deal per gallon to obtain water because
A) there are so many excellent substitutes for water. B) there is no relationship between objective price and subjective value. C) they are usually creatures of habit. D) they think water, as a basic necessity, ought to be supplied at a very low price. E) they place a very low marginal value on water.
What could explain why South Korea's gross domestic product (GDP) per capita increased so much faster since the 1970s than North Korea's GDP per capita?
What will be an ideal response?
In the early stages of the 1980s banking crisis, financial institutions were especially harmed by
A) declining interest rates from late 1979 until 1981. B) the severe recession in 1981-82. C) the disinflation from mid 1980 to early 1983. D) the increase in energy prices in the early 80s.
If aggregate demand grows faster than aggregate supply, the equilibrium price level will rise
a. True b. False Indicate whether the statement is true or false