Assume the United States can use a given amount of its resources to produce either 20 airplanes or 8 automobiles and Japan can employ the same amount of its resources to produce either 20 airplanes or 10 automobiles. The U.S. should specialize in:
A. airplanes.
B. automobiles.
C. both goods.
D. neither good.
Answer: A
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In order to meet a deficiency of required reserves, a bank could: a. buy securities
b. deposit vault cash with the Fed. c. turn some of its deposits at the Fed into cash. d. close some checking accounts. e. borrow from another bank in the federal funds market.
The idea of opportunity cost suggests that the cost of a particular choice should be measured by the
a. price of the good chosen b. price of the good divided by income c. value of the best alternative sacrificed d. amount of the good consumed e. sum of the costs of all foregone opportunities
Compared to the situation existing when the Kyoto Protocols were created,
A. India actually produces less greenhouse gasses (GHG). B. the U.S. Senate finally approved the treaty under pressure from President Bush. C. China produces two and one-half times more greenhouse gasses (GHG). D. the U.S. is producing less greenhouse gasses (GHG) than it had promised.
According to the concept of the "invisible hand," if Susie opens and operates a profitable childcare center, then:
A. government should regulate the business to ensure quality. B. the profit Susie earns indicates that she is overcharging for her services. C. she has served society's interests by providing a desired good or service. D. this demonstrates that consumer sovereignty is not present in this market.