Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases
B. remains constant.
C. initially increases, then decreases.
D. decreases.
Answer: A
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Macroeconomic equilibrium requires
A) equilibrium in the goods market. B) equilibrium in the money market. C) equilibrium in both the goods and money markets. D) equilibrium in neither the goods nor the money market.
Suppose the governments of Mexico and the United States agree to a fixed exchange rate. Describe some of the options available to the Mexican government if the peso was persistently overvalued, creating a surplus of pesos on the foreign exchange market. Be sure to explain how each of these options would be expected to impact the supply and/or demand for Mexican pesos
Refer to Table 7-3. Select the statement that accurately interprets the data in the table.
A) Celeste has a comparative advantage in making saddles. B) Mateo has an absolute advantage in making spurs. C) Mateo has a comparative advantage in making saddles. D) Mateo has a comparative advantage in making saddles and making spurs.
An export subsidy raises the domestic price of the product.
Answer the following statement true (T) or false (F)