Which of the following is corrrect?
A) Governments can not achieve the level of output they want.
B) Changing government spending or taxes is easy.
C) Investment will remain constant.
D) Expectations do not matter for government to change spending or taxes.
A
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If the ratio of the dollar price of a U.S. toy to the dollar price of a Chinese toy is less than one:
A) retailers in the U.S. should buy the toys from both Chinese suppliers and American suppliers. B) retailers in the U.S. should not buy the toys from both Chinese suppliers and American suppliers. C) retailers in the U.S. should buy the toys from Chinese suppliers. D) retailers in the U.S. should buy the toys from American suppliers.
The Federal Open Market Committee meets approximately
a. every three weeks b. every six weeks c. every 3 months d. every 6 months.
Members of the European Monetary Union
A. adopt a common currency called the euro. B. float their domestic currency exchange rate with both the euro and the rest of the world. C. can continue to use their own domestic currency but are required to hold a stipulated amount of a common currency. D. cannot hold reserves of the common currency.
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20NA195 B35 180 C45 150 D50 100NAOn the basis of Table 1.2, what is gained by producing at point B rather than point A?
A. 15 Stealth bombers. B. 15 B-1 bombers. C. 195 Stealth bombers. D. 35 B-1 bombers.