Monetary expansion, with perfect capital mobility, is effective in improving international price competitiveness of a country in
A. the short run with floating exchange rates.
B. the short run with fixed exchange rates.
C. the long run with floating exchange rates.
D. the long run with fixed exchange rates.
Answer: A
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If a country has absolute advantage in the production of all goods, then it will have no incentive to trade
Indicate whether the statement is true or false
Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 The opportunity cost of moving one miner from Mother Lode to another mine is:
A. 2 tons per day. B. 1 ton per day. C. 3 tons per day. D. 4 tons per day.
John has to choose between two jobs: one that offers him $50 per hour and one that offers him $35 per hour. The opportunity cost of choosing the job that offers him $50 per hour is:
A) $1.5 per hour. B) $15 per hour. C) $35 per hour. D) $85 per hour.
If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level, we would base our measure of inflation on
A) the household price index. B) the GDP deflator. C) the producer price index. D) the consumer price index.