Specialization implies that an individual should produce the good for which he/she has the ________ opportunity cost.
A. necessary
B. highest
C. general
D. lowest
Answer: D
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Structural unemployment may result from all of the following factors EXCEPT
A) improved elementary and secondary education. B) union wage contracts. C) government-imposed licensing arrangements that restrict entry into certain professions. D) welfare and unemployment benefits.
Which of the following is not a reason to be cautious about using GDP as an indicator of development?
a. Developing countries may not have many statisticians. b. GDP includes the value of harmful products. c. Many goods and services are exchanged for others and are not recorded as having a specific value. d. Traditional methods of comparing countries' GDP data have numerous statistical weaknesses. e. All of the above are reasons for caution.
In the two-period model, r denotes
A) real income. B) the nominal interest rate. C) the real interest rate. D) current taxes.
Other things the same, in the open-economy macroeconomic model, if the exchange rate rises,
a. the demand for dollars shifts left. b. the demand for dollars shifts right. c. the quantity of dollars demanded falls. d. the quantity of dollars demanded rises.