If the PPF for two goods is a downward-sloping straight line, the resources used to produce those goods are equally well suited to the production of both goods
Indicate whether the statement is true or false
True
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Which of the following statements is true of the world price of a good?
A) It is determined by the World Bank. B) It is determined by the intersection of the world supply and world demand curves for the good. C) It is always less than the domestic price of the good in the country that exports the good. D) It is always greater than the domestic price of the good in the country that imports the good.
According to the life-cycle hypothesis, as people grow older ________
A) their wealth grows before and after retirement B) their wealth declines before and after retirement C) their wealth grows before retirement, then declines after retirement D) their wealth falls before retirement, then rises after retirement
In theory the market's willingness-to-pay (WTP) should be equal to the market's willingness-to-accept (WTA). In other words, if you are willing-to-pay $1 for an incremental improvement in tap water quality, then you should be willing-to-accept $1 for an incremental decrease in tap water quality. In practice, however, the two are often estimated to be unequal. Which of the following helps to explain this disparity?
a. the WTA/WTP disparity b. the endowment effect c. benefit transfer d. value of statistical life e. cost-benefit analysis f. expected value g. risk and uncertainty h. None of the above.
Easy monetary policy ________ interest rates which ________ the demand for a currency and ________ the market equilibrium value of the exchange rate.
A. increases; increases; increases B. decreases; decreases; decreases C. increases; decreases; increases D. increases; increases; decreases