Refer to Table 5.1. Hector has a comparative advantage in the production of
A) bracelets.
B) tiaras.
C) both products.
D) neither product.
B
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A price floor
A) changes the equilibrium price if it is imposed in black markets. B) changes the price and quantity if it is set below the equilibrium price. C) changes the price and quantity if it is set above the equilibrium price. D) does not create a black market if it is set above the equilibrium price. E) changes the price and quantity only if it equals the equilibrium price.
If a non-renewable resource is scarce, has constant marginal cost of production and is sold in a competitive market,
A) its price will increase over time. B) its price will exceed marginal cost. C) its price will increase by the rate of interest. D) All of the above.
The amount of interest owed on a loan of $75,000 after a year at an interest rate of 1 percent is:
A. $75,750. B. $7,500. C. $82,500. D. None of these is true.
Real GDP measures the ________ of production; nominal GDP measures the ________ of production.
A. current dollar value; current dollar value B. current dollar value; market value C. current dollar value; physical volume D. physical volume; current dollar value