Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples. The opportunity costs of producing 1 ton of apples for Alpha and Omega, respectively, are:
a. 0.25 tons of oranges; 0.5 tons of oranges.
b. 9 tons of oranges; 4 tons of oranges
c. 2 tons of oranges; 4 tons of oranges.
d. 4 tons of oranges; 2 tons of oranges.
c
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Sam's production possibilities frontier has good A on the horizontal axis and good B on the vertical axis. If Sam is producing at a point inside his frontier, then he
A) can increase production of both goods with no increase in resources. B) is fully using all his resources. C) values good A more than good B. D) values good B more than good A.
The euro, a common currency for most of the nations of Western Europe, was introduced
A) before 1900. B) before 1990. C) before 2000. D) in order to snub the pride of the U.S. E) in order to fix currencies in terms of the U.S dollar.
Federal Reserve Notes:
a. Are assets in the balance sheet of the Federal Reserve. b. Enter the economy when U.S. financial institutions demand cash from the Federal Reserve. c. Enter the banking system every time the Federal Reserve sells government securities. d. All the above are true. e. None of the above is true.
Refer to Figure 11.3. Assume aggregate demand is represented by AD2 and full-employment output is $5.8 trillion. If aggregate demand decreases by the amount of the AD Excess, equilibrium will occur at
A. Point a. B. Point b. C. Point c. D. Point d.