OneCell Phone	Lumber (per board foot)
Estonia	40 hours	8 hours
Finland	16 hours	4 hours

Table 2-4 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.

Refer to Table 2-4. Finland has a comparative advantage in the production of

a.cell phones.

b.neither product.

c.lumber.

d.both products.

Clear my choice

Question2

Not yet answered

Marked out of 1.00

Flag question

Question text

Suppose a developing country experiences a reduction in machinery and capital equipment as foreign entrepreneurs decrease the amount of investment in the economy. As a result,

a.the economy will move up along the long-run aggregate supply curve.

b.the long-run aggregate supply curve will shift to the left.

c.the economy will move down along the long-run aggregate supply curve.

d.the long-run aggregate supply curve will shift to the right.

Clear my choice

Question3

Not yet answered

Marked out of 1.00

Flag question

Question text

Refer to Figure 2-7. What is the opportunity cost of producing 1 ton of coconuts in Guatemala?

Figure 2-7 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts.

a.1/2 of a ton of pineapples

b.1 1/3 tons of pineapples

c.2 tons of pineapples

d.90 tons of pineapples

Clear my choice

Question4

Not yet answered

Marked out of 1.00

Flag question

Question text

Among potential stores of value, money

a.provides more services than the other assets.

b.offers the highest rate of return.

c.increases in value during periods of inflation.

d.has the advantage of being the most liquid asset.

Clear my choice

Question5

Not yet answered

Marked out of 1.00

Flag question

Question text

The federal government debt ________ when the federal government runs a deficit and ________ when the federal government runs a surplus.

a.decreases; increases

b.decreases; decreases

c.increases; increases

d.increases; decreases

Clear my choice

Question6

Not yet answered

Marked out of 1.00

Flag question

Question text

At a long-run macroeconomic equilibrium, real GDP is always equal to potential GDP.

a.True

b.False

Clear my choice

Question7

Not yet answered

Marked out of 1.00

Flag question

Question text

Jack just received a promotion at work and now works 50 hours per week instead of 35. As a result,

a.neither the unemployment rate nor the labor force participation rate changed.

b.the unemployment rate increased.

c.the labor force participation rate increased.

d.the unemployment rate decreased.

Clear my choice

Question8

Not yet answered

Marked out of 1.00

Flag question

Question text

	OneCell Phone	Lumber (per board foot)
Estonia	40 hours	8 hours
Finland	16 hours	4 hours

Table 2-4 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.

Refer to Table 2-4. If the two countries specialize and trade, who should export cell phones?

a.Estonia

b.They should both be importing cell phones.

c.Finland

d.There is no basis for trade between the two countries.

Clear my choice

Question9

Not yet answered

Marked out of 1.00

Flag question

Question text

Credit card balances are

a.part of M1.

b.part of M2.

c.part of M3.

d.not part of the money supply.

Clear my choice

Question10

Not yet answered

Marked out of 1.00

Flag question

Question text

Table 8-1

Product	Quantity	Price per Unit
Coke	10,000	$2
iPhone	2,000	150
Backpacks	4,000	25
Hershey bars	8,000	1

Refer to Table 8-1. Consider the table of production and price statistics for a small economy in 2011. If the economy only produces the four goods listed below, what is GDP for 2011?

a.

$428,000

b.

$267,000

c.

$24,000

d.

$1,424