Nominal income:
A. Reflects the purchasing power of money.
B. Is income adjusted for inflation.
C. Is the amount of money income, measured in current dollars.
D. Is the amount of money income, measured in constant dollars.
C. Is the amount of money income, measured in current dollars.
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A variable factor of production:
A. is fixed in the long run but variable in the short run. B. is variable in both the short run and the long run. C. plays no role in the law of diminishing marginal returns. D. is variable only in the short run.
Suppose the price of gold is $300 per ounce in the United States and 2,400 pesos per ounce in Mexico. If purchasing power parity holds and if the price of oil is $25 per barrel in the United States, the price of oil is ________ pesos per barrel in Mexico.
A. 250 B. 200 C. 96 D. 3.125
In the figure below, AB is the production-possibility curve of Canada. I1 and I2 are two of the community indifference curves of Canada. With free trade, the international price ratio is 0.25 bushel of wheat/bale of cotton, and Canada will export:
A. twenty bushels of wheat. B. sixty bales of cotton. C. eighty bushels of wheat. D. forty bales of cotton.
Refer to the data. U.S. imports are:
A. $26.
B. $16.
C. $24.
D. $14.