The economy moves from point A, where it produces 100 units of X and 200 units of Y, to point B, where it produces 200 units of X and 150 units of Y. It follows that
A) point A is a productive inefficient point.
B) point A may be a productive inefficient point.
C) point A may be a productive efficient point.
D) point B is a productive efficient point.
E) b and c
E
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Which of the following is true of a country with a managed exchange rate system?
A) The central bank of the country always pursues contractionary monetary policy. B) The current account balance of the country is always positive. C) The current account balance of the country is always negative. D) The central bank of the country actively intervenes to influence the exchange rate.
Refer to Table 14-9. Saudi Arabia and Yemen must decide how much oil to produce. Since the demand for oil is inelastic, relatively low production rates drive up prices and profits
Saudi Arabia, the world's largest and lowest-cost producer, is able to influence market price; it has an incentive to keep output low. Yemen, on the other hand, is a relatively high-cost producer with much smaller reserves. Use the payoff matrix in Table 14-9 to answer the following questions. a. What is the dominant strategy for Saudi Arabia? b. What is the dominant strategy for Yemen? c. What is the Nash equilibrium?
The more bowed the Lorenz curve, the
A) richer the society. B) more unequal the distribution of money income. C) poorer the society. D) more equal the distribution of income.
The market for renewable resources often fail to allocate the resources to their highest-valued uses
a. True b. False Indicate whether the statement is true or false