Refer to Figure 2-9. The opportunity cost of obtaining 10 additional toasters by moving from point B to point A is
a. 10 toothbrushes.
b. 20 toothbrushes.
c. 30 toothbrushes.
d. zero, since the economy has the additional resources to produce 10 additional toasters.
d. zero, since the economy has the additional resources to produce 10 additional toasters.
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Briefly define a tariff and a quota. Do any of these methods restrict trade without harming domestic consumers?
What will be an ideal response?
An increase in the real interest rate will cause an increase in ________
A) saving B) planned investment C) net exports D) all of the above E) none of the above
If U.S. prices increase relative to the rest of the world, we would expect imports:
A. to increase and exports to fall. B. to decrease and exports to increase. C. as well as exports to increase. D. as well as exports to decrease.
When aggregate expenditure is less than? GDP, which of the following is? true?
A) There was an unplanned increase in inventories.
B) Households bought more new homes than they anticipated.
C) Firms spent more on capital goods than they anticipated.
D) All of the above must be true when aggregate expenditure is less than GDP.