Which of the following is true of the production possibilities curve?
What will be an ideal response?
. It assumes a fixed quantity of resources
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Assume you save $1,000 in a bank account that pays 8 percent interest per year and the inflation rate is 3 percent. At the end of the year you have earned
A) a nominal return of $50. B) a negative real return. C) a real return of $50. D) a real return of $80.
Raul Prebisch's objection to having developing countries treat trade as the "engine of growth" was that
a. agricultural goods were becoming cheaper while industrial products were becoming more expensive b. industrial products were being substituted for primary products c. workers in poor countries had little bargaining power, while unions in rich countries pushed wages up d. agricultural products were becoming a smaller portion of peoples' budgets as income rose e. all of the above
The thrift institutions:
a. were nonprofit banking institutions. b. were owned by the Federal Reserve. c. historically offered only savings accounts, not checking accounts. d. controlled the U.S. monetary policy prior to the establishment of the Federal Reserve. e. were monitored by the Federal Deposit Insurance Corporation.
Which of the following examples would most likely be caused by a price floor?
a. shortage of unemployed skilled professionals b. surplus of unemployed skilled professionals c. shortage of unemployed unskilled workers d. surplus of unemployed unskilled workers