Suppose the CPI was 56 in 1967, and suppose one must spend $349 today to obtain the same basket of goods and services that could be bought for $100 in 1967 . Then today's CPI is
a. 223.7.
b. 195.0.
c. 623.2.
d. 195.4.
d
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Which of the following would mostly likely shift the production possibilities curve in an outward direction?
a. a decrease in the current rate of unemployment b. a movement along the curve sacrificing capital goods for consumption goods c. an increase in the price of goods and services d. advances in medicine that reduce the incidence of disease and lengthen productive life spans
A country, such as Argentina in 2002, that is buying its own currency to maintain a given exchange rate
a. has a balance of payments surplus. b. has an undervalued currency. c. has an overvalued currency. d. need not fear a "run" on its currency.
The owner of a small business applies for a bank loan and tells the loan officer that the funds will be used to expand inventory for the upcoming holiday season. The small business finds itself in need of additional funds to meet the monthly rent for the next quarter and the owner uses the loan proceeds to pay the rent. This is an example of:
A. default risk. B. a lack of diversification for the bank. C. liquidity risk. D. information asymmetry.
In Figure 45.1, the opportunity cost to workers of working at the equilibrium wage-labor combination is 
Figure 45.1
A. OW*CL*. B. ABC. C. OBCL*. D. OACL*.