In the context of production possibilities curve analysis, the purpose of a state-supported terrorist attack is to
a. destroy as many resources as possible of a targeted nation in order to enhance its own security.
b. shift the curve inward of the targeted nation by undermining its confidence to defend itself
c. shift the targeted nation's possibilities curve to the right in order to increase the opportunity cost of making a first striker
d. eliminate the targeted nation's ability to counterattack in case of war
e. force the targeted population to decrease its own security expenditures
B
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Which of the following is a firm's supply curve in a perfectly competitive market?
a. Total cost. b. Marginal revenue. c. Marginal cost. d. Average variable cost.
If parties to a contract can anticipate the court's decision in the event of a dispute with some degree of certainty:
a. opportunistic behavior will never be detected. b. opportunistic behavior will be partially detected. c. there will be less room for opportunism. d. only one of the parties will be able to act opportunistically.
Zack quits his job at a consulting firm, which pays $40,000 a year, to enroll in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-year graduate program?
In the figure above, suppose the demand for dollars temporarily decreases so that the demand curve shifts to D2. To maintain the target exchange rate, the Fed
A) can sell dollars. B) can buy dollars. C) must violate both interest rate parity and purchasing power parity. D) cannot maintain the target exchange rate.