Compared to their initial positions at points A and B, as a result of complete specialization and trade, the output of the two countries added together in Figure 35.1 would result in an increase in
A. Neither DVD players nor motorcycles.
B. Both DVD players and motorcycles.
C. Motorcycles only.
D. DVD players only.
Answer: C
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The exchange rate system agreed to in 1944, in which the U.S. government agreed to buy or sell gold at a fixed price of $35 per ounce, is referred to as
A) the Bretton Woods System. B) the gold standard. C) a flexible exchange rate system. D) a floating currency standard.
The fee charged by the seller of an option is referred to as the
A) market price. B) option premium. C) futures fee. D) call price.
A profit-maximizing, monopolistically competitive car wash washes 40 cars per day, and its total cost $200 and currently makes an economic profit of $280. In the long run, everything else equal, the
A. car wash will charge more than $12 per wash. B. car wash will wash more than 50 cars per day. C. car wash will need to hire new workers to wash more cars. D. car wash will wash less than 40 cars per day.
Which of the following is the best measure of size of government as a share of the economy?
What will be an ideal response?