According to Gresham's Law:
a. money with relatively high intrinsic value will be used for transactions.
b. money with relatively low intrinsic value will be used for transactions.
c. money with relatively high intrinsic value will cause inflation.
d. money with relatively low intrinsic value will cause inflation.
e. inflation increases the intrinsic value of money.
b
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Explain the difference between macroeconomic variables that are in terms of levels and growth rates. Which important macroeconomic variables are which? Which one is the unemployment rate?
What will be an ideal response?
The marginal physical product of labor is measured in units of
a. dollars (as in revenue) b. workers hired c. hours worked d. output e. the wage rate
Economic efficiency is achieved when there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and
A) economic surplus plus consumer surplus equals producer surplus. B) consumer surplus plus producer surplus is maximized. C) economic surplus is minimized. D) the difference between consumer surplus and producer surplus is maximized.
Suppose that opportunity costs are constant in both France and Italy. In France, maximum feasible hourly production levels are either 3 units of wheat or 5 units of wine. In Italy, maximum feasible hourly production levels are either 4 units of wheat or 10 units of wine. It is correct to state that
A. Italy has an comparative advantage in producing both wheat and wine. B. France has a comparative advantage in producing both wheat and wine. C. France has a comparative advantage in producing wine. D. Italy has a comparative advantage in producing wine.