Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 sword in Morocco?
A) 1/2 of a belt B) 1 belt C) 1.5 belts D) 2 belts
B
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The idea that people will not consciously make decisions that make them worse off is known as
A) rationality assumption. B) the decision duality. C) Adam Smith's doctrine. D) incentive assumption.
The smaller the mpc, the ________ the income-expenditure multiplier and the ________ the effect of a change in autonomous spending on short-run equilibrium output.
A. larger; larger B. smaller; larger C. larger; smaller D. smaller; smaller
Which of the following will most likely occur during the recovery phase of a business cycle?
A. Real GDP rises, and unemployment falls. B. Real GDP declines, and inflation rises. C. Interest rates rise, and the number of business failures rise. D. Inflation rises, and employment falls.
Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve. As a result
A) both the equilibrium price and quantity of MP3 players will increase. B) the equilibrium price of MP3 players will increase; the equilibrium quantity may increase or decrease. C) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will increase. D) the equilibrium price of MP3 players will decrease; the equilibrium quantity may increase or decrease.