The following table shows the units of output a worker can produce per month in country A and country B.
Country
Food
Electronics
Country A
20
5
Country B
12
4
The opportunity cost of 1 unit of electronics in country A is
A. 4 units of food.
B. 3 units of food.
C. 2 units of food.
D. all of these.
Answer: A
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In the Keynesian model in which the Keynesian short-run aggregate supply curve exists
A) the short-run aggregate supply curve determines real GDP. B) the aggregate demand curve determines the price level. C) unemployment cannot persist for long periods of time. D) aggregate demand determines real GDP per year.
Changes to the benefits system, so that there was less incentive to work, would most likely:
a) Shift aggregate supply outwards so more is supplied at each price b) Shift aggregate supply inwards so less is supplied at each price c) Shift aggregate demand outwards so more is demanded at each price d) Shift aggregate demand inwards so less is demanded at each price
Suppose nominal GDP equaled $10,988 billion while the M2 money supply was $6,063 billion. What was the velocity of the M2 money stock?
A. 0.45 B. 0.55 C. 1.81 D. 2.36
Answer the following statements true (T) or false (F)
1. Specialization based on comparative advantage will shift a nation's production possibilities curve outwards. 2. Through international trade an economy can consume a combination beyond its domestic production possibilities curve. 3. If the U.S. dollar depreciates against the euro, then it will be easier for U.S. exporters to sell their products in Europe. 4. In the dollar/yen market, if the supply of yen increases other things being equal, the dollar will appreciate. 5. Relatively high rates of U.S. inflation compared to other countries will increase the supply of, and decrease the demand for, dollars in foreign exchange markets.