Refer to the given diagram in which line AB is the U.S. production possibilities curve and AC is its trading possibilities curve. The international exchange ratio between beef and cheese (terms of trade):
A. is the absolute value of the slope of line AB.
B. is the absolute value of the slope of line AC.
C. could lie anywhere between the absolute value of the slopes of lines AB and AC.
D. cannot be determined on the basis of this information.
B. is the absolute value of the slope of line AC.
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The income per capita of Ruberia in a certain year was 7,240 rubies and the income per capita of U.S. during the same year was $48,000. A bundle of goods that costs 100 rubies in Ruberia has a price of $1,250 in the U.S
Which country has a higher income per capita using PPP?
The index of intra-industry trade is calculated as:
a. the minimum of imports and exports divided by the average of imports and exports. b. the maximum of imports and exports divided by the sum of imports and exports. c. imports divided by exports. d. imports plus exports divided by the average of imports and exports.
The diagram in panel b (graph) is an example of
A. a demand curve B. the substitution effect C. the income effect D. a demand schedule
Which of the following statements is correct?
A. The actual reserves of a commercial bank equal its excess reserves minus its required
reserves.
B. A bank's liabilities plus its net worth equal its assets.
C. When borrowers repay bank loans, the supply of money increases.
D. A single commercial bank can safely lend a multiple amount of its excess reserves.