Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the question(s) that follow.
Figure 2.2Refer to Figure 2.2. Full resource employment and production efficiency is represented by a point
A. inside the production possibility frontier.
B. outside the production possibility frontier.
C. either inside or along the production possibility frontier.
D. along the production possibility frontier.
Answer: D
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The declining trend in the currency-deposit ratio during 2007-2014 can be explained by
A) the increased holdings of U.S. currency by foreigners. B) bank panics. C) a drop in the rate of interest paid on checking deposits. D) the increasing use of debit cards.
Suppose Russia can produce either 600 pianos or 400 HDTVs, and Italy can produce either 300 pianos or 150 HDTVs. Implicitly, Russia has
A. An absolute but not necessarily a comparative advantage in HDTVs. B. Neither a comparative nor an absolute advantage in HDTVs. C. A comparative but not necessarily an absolute advantage in HDTVs. D. Both an absolute and a comparative advantage in HDTVs.
When you deposit funds in a bank and then the bank lends these funds to a borrower, the bank is engaged in
A) fiduciary investment.
B) fraudulent behavior.
C) universal banking.
D) financial intermediation.
Households sell their inputs to firms in ______ markets.
a. closed b. stock c. product d. factor