Refer to the graph shown.
If Countries X and Y face the production possibility curves A and B, respectively, Country Y has a comparative advantage in the production of:
A. neither agricultural goods nor industrial goods.
B. agricultural goods only.
C. industrial goods only.
D. both agricultural goods and industrial goods.
Answer: B
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Planned expenditures equal real disposable income
A. when saving equals zero. B. at every point on the saving function. C. at every point on the consumption function. D. at every point on the 45-degree line.
A mixed capitalist economy is one in which
a. decisions are based primarily on religion or custom b. all resources are publicly owned and economic planning is centralized c. all resources are privately owned and prices are used to coordinate economic activity d. resources are both publicly and privately owned and some markets are regulated e. all resources are publicly owned and prices are used to coordinate economic activity
In economics, the concept of opportunity cost is:
a. negated by ensuring that the government has a role in a capitalist society. b. defined to be the highest-valued alternative that must be forgone when a choice is made. c. best illustrated by knowing why consumers choose one good over another. d. quantifiable only if you know the real dollar price of the goods and services you are giving up to consume something. e. the methodology that government economists use to determine the total amount of the national debt.
Members of the Federal Reserve Board of Governors are appointed for one fourteen-year term:
A. In an effort to isolate the Fed from political pressures. B. So that Fed decisions will be based on political considerations. C. To give Congress better control over the money supply. D. In an effort to make the Fed responsive to voters.