Consider a nation with an endowment of iron ore and petroleum. If the nation specializes in the production of aluminum and gasoline instead of steel we can say that it is operating:
a. on its production possibilities curve.
b. outside its production possibilities curve.
c. inside its production possibilities curve.
d. on the highest achievable production possibilities curve.
e. on the lowest production possibilities curve.
c
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If the money multiplier is 10, the sale of $1 billion of securities by the Fed on the open market causes a
A) $10 billion decrease in the money supply. B) $1 billion decrease in the money supply. C) $1 billion increase in the money supply. D) $10 billion increase in the money supply.
An import quota will
A) lead to a shift of the demand curve. B) leave the equilibrium price unchanged and increase the quantity sold. C) limit the amount of a foreign good that can be brought into the United States. D) limit the amount of a good local producers can make.
Upon what is your current consumption dependent according to Milton Friedman?
A. The future value of your present income. B. The present value of your lifetime income. C. The income you expect to earn later in life. D. The income you earn today.
An industry with a concentration ratio of 80 would have at least ____ firms.
A. 2 B. 3 C. 4 D. 5