Given whatever income they have, consumers make consumption choices to maximize the
a. total utility of the goods they consume
b. marginal utility of the goods they consume
c. average utility of each good they consume
d. number of goods they buy
e. prices of goods they buy
A
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Assume that there are two nations, Alpha and Beta. Each nation produces two products, wheat and steel. Alpha has a comparative advantage in the production of wheat. If the two nations trade, the trade price of wheat in terms of steel will be
A. greater than the domestic opportunity cost of wheat in both nations. B. less than the domestic opportunity cost of wheat in both nations. C. less than the domestic opportunity cost of wheat in Alpha and greater than the domestic opportunity cost of wheat in Beta. D. greater than the domestic opportunity cost of wheat in Alpha and less than the domestic opportunity cost of wheat in Beta.
The federal budget deficit: a. becomes less prominent during and after each recession
b. forces the government to issue Treasury bonds. c. decreases the growth rate of the U.S. GDP. d. is common when total federal revenue exceeds total federal outlay.
The rule of 72 implies that a country will double its income in about 18 years if its growth rate is:
A. 4 percent. B. 12 percent. C. 6 percent. D. 8 percent.
Along its production possibilities frontier (PPF) an economy can produce 0X and 15Y, 10X and 10Y, 20X and 5Y, or 30X and 0Y. It follows that the PPF is
What will be an ideal response?