Assume a society can produce either olives or grapes. If the marginal rate of transformation of bushels of olives into bushels of grapes is 0.2, then the opportunity cost of olives is
A. the 5 bushels of grapes that must be forgone.
B. the additional 0.2 gallons of olives that can be produced.
C. the 5 bushels of olives that must be forgone.
D. the 0.2 bushels of olives that must be forgone.
Answer: A
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A) gotten richer; gotten poorer B) gotten richer; also gotten richer C) gotten richer; gotten neither richer nor poorer D) gotten poorer; also gotten poorer
According to the interest parity condition, if the domestic interest rate is 10 percent and the foreign interest rate is 12 percent, then the expected ________ of the foreign currency must be ________ percent
A) appreciation; 4 B) appreciation; 2 C) depreciation; 2 D) depreciation; 4
Every allocation of goods in a one good world is efficient because:
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Industries that are truly critical to the national defense should be protected from foreign competition if that is the only way to ensure their existence
a. True b. False Indicate whether the statement is true or false