Trade allows a country to consume outside its production possibilities frontier
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The X-intercept of the budget constraint represents
a. how much of good Y can be purchased if no good X is purchased and all income is spent. b. how much of good X can be purchased if no good Y is purchased and all income is spent. c. total income divided by the price of X. d. b and c.
A fixed exchange rate system encourages speculators to attack weaker currencies.
Answer the following statement true (T) or false (F)
Refer to Figure 29.3 for a cotton market with an equilibrium price of P1 and a Commodity Credit Corporation (CCC) loan rate set above P1. Given this situation, cotton farmers are most likely to
A. Sell their cotton on the market and repay only a portion of the CCC loan. B. Leave the cotton farming business. C. Sell their cotton on the market and repay the CCC loan with the proceeds plus other funds to make up the difference. D. Give their cotton to the CCC and not repay the loan.
Fiat money is generally issued by
A) private banks. B) central banks. C) brokerage firms. D) major multinational corporations.