Suppose both countries illustrated in Figure 35.1 specialized completely in the good they could produce with the lowest opportunity cost. What would the total production of motorcycles be?
A. 4,000.
B. 8,000.
C. 2,000.
D. 3,000.
Answer: A
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The Federal Reserve System has
A) 50 district banks. B) 12 district banks. C) 24 district banks. D) 7 district banks.
In the 1980s national savings declined as a percentage of GDP. Assuming that domestic private investment's percentage share has not declined, this situation requires, ceteris paribus,
A) net foreign investment (NX) to decrease. B) net foreign investment (NX) to increase. C) U.S. exports to decrease. D) A and C are both necessary outcomes.
In a successive monopoly structure, if distributor has a constant marginal cost of $5 and is paying the producer $12 per unit, which is the profit-maximizing wholesale price, what is the distributor's marginal revenue at this output level?
A) $7 B) $17 C) $12 D) $5
The aggregate demand and aggregate supply model implies monetary neutrality
a. only in the short run. b. only in the long run. c. in both the short run and the long run. d. in neither the short run nor long run.