Production refers to
A) physically producing material goods only.
B) any activity of a firm, whether a corporation, partnership, or sole proprietorship.
C) any activity that results in the conversion of resources into goods or services that can be consumed.
D) any activity that causes a material conversion of manufactured goods.
Answer: C
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If the fundamental value of the nominal exchange rate equals 0.20 U.S. dollars per franc, but the franc is officially fixed at 0.15 U.S. dollars per franc, then the franc exchange rate is ________ and to maintain this exchange rate there will be ________ in the government's stock of international reserves.
A. undervalued; a net increase B. undervalued; a net decline C. overvalued; a net increase D. overvalued; a net decline
While moving on the production possibilities frontier, if the opportunity cost of producing one good is 1/2, the opportunity cost of producing the other good (in the same range) is
A) 1/2. B) 1/4. C) 2. D) 4. E) An amount that cannot be calculated without more information.
"The theory that regulation seeks an efficient use of resources is called the capture theory of regulation." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
In a two product two country world, international trade can lead to increases in
A) consumer welfare only if output of both products is increased. B) output of both products and consumer welfare in both countries. C) total production of both products but not consumer welfare in both countries. D) consumer welfare in both countries but not total production of both products. E) prices of both goods in both countries.