If a country has a lower opportunity cost of producing oranges, then this is:
A. inefficient resource use.
B. an absolute advantage.
C. a situation in which oranges should be imported.
D. a comparative advantage.
Answer: D
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If workers and firms lower their inflation expectations
A) actual inflation will fall to match expected inflation. B) unemployment will rise. C) the short-run Phillips curve will be vertical. D) the short-run Phillips curve will shift downward.
If we observe that when consumers' incomes rise by 10%, the quantity demanded of ice cream increases by 5%, then ice cream is an inferior good
a. True b. False Indicate whether the statement is true or false
A $1,000 face value bond, with one year to maturity that sells for $950 and has a $40 annual coupon has a:
A. coupon rate of 4.00% and a current yield that is below this. B. current yield and yield to maturity of 4.00%. C. current yield of 4.21%. D. yield to maturity that equals the current yield.
Refer to the information provided in Table 20.3 below to answer the question(s) that follow. Table 20.3
Refer to Table 20.3. If the exchange rate is $1 = 2 euros, then
A. the United States will import raspberries and Belgium will import chocolate. B. Belgium will import both raspberries and chocolate. C. the United States will import both raspberries and chocolate. D. Belgium will import chocolate.