The Mexican financial crisis of 1994 was not caused by:
A) improved tourism from the U.S. to Mexico.
B) the country experiencing increasingly larger trade deficits.
C) the rising Mexican inflation rate.
D) a loss of confidence in the economy which resulted in massive selling of pesos.
Figure 18.4
Refer to Figure 18.4. With free trade, how many artichokes are produced domestically
in Duckland?
A) 75
B) 65
C) 30
D) 0
Which of the following contributed to the $455 billion budget deficit in 2008?
A) the recession that started in December 2007
B) the tax cuts in January 2008 that were geared to stimulate the economy
C) the continuing wars in Iraq and Afghanistan
D) All of the above are correct.
Table 3.1
Table 3.1 illustrates Willy and Blythe’s hourly production for apples and carrots. From
the table, we can conclude that:
A) Blythe has an absolute advantage in producing apples but not carrots.
B) Blythe has an absolute advantage in producing carrots but not apples.
C) Blythe has an absolute advantage in producing both goods.
D) Blythe has an absolute advantage in producing neither good.
Suppose nation A produces only two goods, apples and oranges. If nation A produces
only apples, it can make 12 apples per day. If nation A produces only oranges, it can
make 36 oranges per day. If the country has a constant production trade-off between
apples and oranges, then the opportunity cost of one apple in nation A is:
A) 36 oranges.
B) 3 oranges.
C) 12 oranges.
D) .33 oranges.
Refer to Figure 11.4. Which diagram illustrates the effect of an increase in the marginal
propensity to consume?
A) A
B) B
C) C
D) D
A firm produces its product using both capital and labor. When it does not change its
capital usage, but doubles its labor input, its output increases by less than 50%. Which
of the following is the most likely explanation of this finding?
A) the principle of opportunity cost
B) the principle of diminishing returns
C) the marginal principle
D) the spillover principle
Which of the following would be counted as part of the stock of capital?
A) the copy machines in a photocopying shop
B) the lettuce on a salad bar
C) a newly discovered mineral deposit
D) all of the above
Figure 1A.2
Refer to Figure 1A.2. The slope between points a and c is
A) -5.
B) -6.
C) 10.
D) 30.
Figure 14.2
Refer to Figure 14.2. At an interest rate of 5%, there is:
A) an equilibrium and the interest rate will not change.
B) an equilibrium and the interest rate will increase.
C) an excess supply of money and the interest rate will decrease.
D) an excess demand for money and the interest rate will not change.
In Figure 11.1, a decrease in the marginal propensity to consume is represented by a
change in the consumption function from
A) to .
B) to .
C) to .
D) to .
Saving is defined as:
A) income that is not consumed.
B) money in my savings account.
C) consumption that is not earned.
D) money in my checking account.