If Japan has an absolute advantage over the United States in making TVs, then Japan:
A. probably sells TVs to the United States.
B. it will have no reason to trade with the US.
C. produces more TVs than the United States using the same resources.
D. has the ability to produce TVs at a lower opportunity cost than the United States.
Answer: C
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The time consistency problem implies that
A) the central bank should not commit. B) central bank commitment is useful. C) discretion is better than tying your hands. D) there are problems we cannot solve.
At a fair carnival roulette wheel, a player can either win $10, $30, or $80 . If it costs $40 to play, would an individual gain or lose from playing the game
a. Gain b. Lose c. Breakeven-neither gain nor lose d. None of the above
In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. If 1 million of those unemployed are cyclically unemployed, what is the natural unemployment rate?
A) 5 percent B) 11.1 percent C) 5.6 percent D) 6.7 percent E) none of the above
An increase in the price level means that a dollar buys __________ goods and services so the value of a dollar __________
Fill in the blank(s) with correct word