If the law of increasing opportunity costs is operable, and currently the opportunity cost of producing the 1,000th unit of good X is 0.5Y, then the opportunity cost of producing the 2,001st unit of good is X is most likely to be
A) less than 0.5Y.
B) more than 0.5Y but less than 2Y.
C) more than 0.5Y
D) less than 0.5Y but more than zero.
E) none of the above
C
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Suppose Spam is an inferior good. If the U.S. economy is growing strong, and demanders' incomes were to rise, which of the following would tend to occur?
A) Spam sales would increase. B) Spam demand would decrease. C) The price of Spam would increase. D) Both A and C above. E) Both B and C above.
As foreign currency becomes less expensive in terms of the U.S. dollar,
a. foreign goods become cheaper to U.S. citizens. b. foreign goods become more expensive to U.S. citizens. c. the U.S. demand curve for foreign currency shifts to the left. d. the U.S. demand curve for foreign currency shifts to the right.
If exchange rates are determined in a floating rate system, what determines the value of a U.S. dollar in terms of euros?
a. government exchange rate policies b. IMF rules and policies c. demand and supply d. central bank interventions
Which of the following would be most likely to cause the per capita income of less-developed countries to rise?
A. development of strong labor unions B. more rapid population growth C. investment expenditures that enhance the human capital of labor force participants D. an international minimum wage law