Refer to the tables. If South Cantina is producing at production alternative D, the opportunity cost of the third unit of capital goods will be:
Answer the question on the basis of the following production possibilities tables for two
countries, North Cantina and South Cantina:
A. 3 units of consumer goods.
B. 4 units of consumer goods.
C. 5 units of consumer goods.
D. 6 units of consumer goods.
D. 6 units of consumer goods.
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If the exchange rate rises from .65 British pounds per dollar to .70 pounds per dollar, then compared to British goods, U.S. goods become
a. relatively more expensive for both British and U.S. residents. b. relatively more expensive for British residents and relatively less expensive for U.S. residents. c. relatively less expensive for British residents and relatively more expensive for U.S. residents. d. relatively less expensive for both British and U.S. residents.
Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $3
A) economic surplus is maximized. B) the quantity supplied is economically efficient but the quantity demanded is economically inefficient. C) not enough consumers want to buy pecans. D) the quantity supplied is less than the economically efficient quantity.
In the ________ markets all profits and losses must be settled on a daily basis
A) futures B) forward C) spot D) swap
The effective rate of protection measures
A) the "true" ad valorem value of a tariff. B) the quota equivalent value of a tariff. C) the efficiency with which the tariff is collected at the customhouse. D) the protection given by the tariff to domestic value added. E) the difference between domestic and foreign prices of the import.