Which of the following is NOT a reason why countries trade goods with one another?
a. differences in technology used in different countries
b. differences in countries' total amount of resources
c. the proximity of countries to one another
d. differences in countries' languages and cultures
Ans: d. differences in countries' languages and cultures
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In the loanable funds market, which of the following is an example of investment demand?
A) Mark buying rare gold coins B) Scott purchasing a rookie-year baseball card for last year's World Series MVP C) Mary buying stocks for her retirement portfolio D) Brian, owner of Bryan Games, purchasing computers to enhance the production of games E) George purchasing United States savings bonds for his son's college fund
Compared to their percentage shares in 1968, over the next 40 years, the percentage shares of each of the lowest four quintiles
A. rose substantially. B. rose somewhat. C. stayed about the same. D. declined.
If purchasing-power parity holds, then the value of the
a. real exchange rate is equal to one. b. nominal exchange rate is equal to one. c. real exchange rate is equal to the nominal exchange rate. d. real exchange rate is equal to the difference in inflation rates between the two countries.
The production possibilities frontier model assumes which of the following?
A) Labor, capital, land, and natural resources are unlimited in quantity. B) The economy produces only two products. C) Production of any level of the two products that the economy produces is currently possible. D) The level of technology is variable.