The figure below shows the free-trade production and consumption in Country Y. AB is the production-possibility curve of Country Y. I1 is the community indifference curve of Country Y. Country Y imports
A. forty gallons of wine.
B. fifty gallons of wine.
C. seventy pounds of cheese.
D. twenty pounds of cheese.
Answer: B
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Crowding out, following an increase in government spending, results from (the exchange rate is the foreign exchange price of the domestic currency)
A) higher interest rates and a lower exchange rate. B) lower interest rates and a lower exchange rate. C) lower interest rates and a higher exchange rate. D) higher interest rates and a higher exchange rate.
A firm’s average fixed cost
A. does not vary with output. B. decreases as output rises. C. is equal to average cost when average cost is minimized D. causes marginal cost to rise as output rises.
The school of economic thought that emphasized the importance of incentives to encourage savings, investment, and productivity is known as ________ economics.
Fill in the blank(s) with the appropriate word(s).
The size of total production in an economy is measured by the gross domestic product
a. True b. False Indicate whether the statement is true or false