Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Canada has the ____________ opportunity cost of a pair of shoes than the United States, so: ____________.
A. higher; Canada should specialize in shoe production
B. lower; Canada should specialize in apple production
C. higher; Canada should specialize in apple production
D. lower; Canada should specialize in shoe production
D. lower; Canada should specialize in shoe production
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The value of a stock is based on the
a. present values of the dividend stream and final price. As a result, the value of a stock rises when interest rates rise. b. present values of the dividend stream and final price. As a result, the value of a stock falls when interest rates rise. c. future values of the dividend stream and final price. As a result, the value of a stock rises when interest rates rises. d. future values of the dividend stream and final price. As a result, the value of a stock falls when interest rates rise.
Which of the following are effects of an increase in government spending financed by a tax increase?
a. the tax increase reduces consumption; the change in the interest rate reduces residential construction b. the tax increase reduces consumption; the change in the interest rate raises residential construction c. the tax increase raises consumption; the change in the interest rate reduces residential construction d. the tax increase raises consumption; the change in the interest rate reduces residential construction
In Figure 20.2, if Aggregate Demand does not change, the increase in Real GDP will be accompanied by 
A. lower real wages. B. no change in the price level. C. a lower price level. D. a higher price level.
An increase in oil prices may cause
A. market equilibrium. B. market price reductions. C. a reduction in the quantity of oil demanded. D. demand to curve to the right.