The opportunity cost of a purchase is:
a. the selling price of the good or service.
b. zero if the good or service satisfies a need.
c. greater for persons who are rich.
d. the good or service given up for the good or service purchased.
d
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Why may a central bank intervene in the foreign exchange market when its currency is appreciating?
A) concerns about the country's exports becoming less competitive B) concerns about inflation C) concerns about imports becoming less competitive D) to sterilize the effects on the domestic economy
Refer to the following graph. The price of labor is $3 per unit:
What is the minimum cost of producing 100 units of output?
A. $150 B. $105 C. $60 D. $75
Figure 11-2
?
Which graph in Figure 11-2 best reflects a Keynesian’s view of the short-run impact of an increase in the personal income tax rate?
A. 1 B. 2 C. 3 D. 4
Suppose Country Y produces only corn and clothing using only two inputs-land and labor. Production of corn requires an intensive use of land whereas clothing is a labor-intensive good. If the price of corn increases by 15 percent and the price of clothing remains constant, the Stolper-Samuelson theorem predicts that in the long run
A. the wage rate will increase by more than 15 percent. B. the rental rate of land will increase by 15 percent. C. the rental rate of land will increase by more than 15 percent. D. the wage rate will remain unchanged.