The terms of trade equation is written as
a. index of export prices – index of import prices
b. 100 × (index of import prices × index of import prices)
c. 100 × (index of import prices + index of export prices)
d. 100 × (index of import prices/index of export prices)
e. 100 × (index of export prices/index of import prices)
E
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An unexpected event that causes the aggregate demand curve to shift inward or outward is an
A) aggregate demand shock. B) aggregate supply shock. C) aggregate supply increase. D) aggregate supply decrease.
If the real exchange rate for the dollar is above the equilibrium level, the quantity of dollars supplied in the market for foreign-currency exchange is
a. greater than the quantity demanded and the dollar will appreciate. b. greater than the quantity demanded and the dollar will depreciate. c. less than the quantity demanded and the dollar will appreciate. d. less than the quantity demanded and the dollar will depreciate.
The short-run individual supply curve of the perfectly competitive firm is:
a. the upward-sloping portion of its average variable cost curve. b. its average total cost curve. c. its marginal cost curve above average variable cost. d. its marginal cost curve above average total cost.
The basic factors of production include
A. Land, labor, money, and inputs. B. Land, labor, capital, and entrepreneurship. C. Labor and money. D. Land, labor, money, and capital.