If the CPI is rising more slowly than your nominal income,
a. then there is no inflation in the economy
b. your real income is decreasing.
c. your real income is increasing.
d. your real income remains the same.
c. your real income is increasing.
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The finding that U.S. exports tend to come from labor-intensive industries, while U.S. imports are produced using relatively capital intensive techniques is known as
A) the Leontief paradox. B) the balance of trade enigma. C) the Heckscher-Ohlin paradox. D) the Krugman finding.
Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,
a. the price of tennis balls increases. b. the price of tennis balls decreases. c. the price of tennis balls does not change. d. there is no longer a market for tennis balls.
The law of increasing opportunity costs states that as
A) less of a good is produced, the higher the opportunity costs of producing that good. B) more of a good is produced, the lower the opportunity costs of producing that good. C) more of a good is produced, the higher the opportunity costs of producing that good. D) more of a good is produced, the opportunity cost of producing the good remains the same. E) a and b
To a bank, reserves are classified as
A) an asset. B) a liability. C) equity D) a liability or an asset