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C morethan3bushelsofsoybeansperbarrelofoil d

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Unformatted text preview: exico with one unit of equivalent resources. Soybeans (bushels) Canada 60 Mexico 24 Oil (barrels) 10 8 TABLE 33 -3 6) Refer to Table 33 - 3. Mexico would not gain by producing and exporting oil and importing soybeans unless it received A) any quantity of soybeans. B) 2 bushels of soybeans per barrel of oil. C) more than 3 bushels of soybeans per barrel of oil. D) more than 6 bushels of soybeans per barrel of oil. E) more than 10 barrel of oil. 7) Refer to Table 33 - 3. The opportunity cost of a barrel of oil in Canada is A) 16.67 bushels of soybeans. B) 6 bushels of soybeans. C) 2.5 bushels of soybeans. D) 1.2 barrels of oil. E) 0.8 barrels of oil. 8) Because of scarcity, individuals are compelled to A) make choices among alternatives. B) sacrifice in consumption but not in production. C) sacrifice in production but not in consumption. D) improve distribution but not production. E) improve production but not distribution. 2 Consider the following information describing a closed economy with no government and where aggregate output is demand determined: 1. 2. 3. 4. the equilibrium condition is Y = C + I the marginal propensity to save is 0.25 the autonomous part of C is $30 investment is autonomous and is $40 TABLE 21 -1 9) Refer to Table 21 - 1. The equilibrium level of national income will be A) $ 70. B) $ 93. C) $120. D) $160. E) $280. 10) Suppose the Bank of Montreal wants a four percent real rate of return on all its loans, and anticipates an annual inflation rate of six percent. It should therefore lend its money at a nominal interest rate of C) five percent. D) four percent. E) one percent. A) ten percent. B) nine percent. 11) All of the following will cause the supply curve to shift EXCEPT: A) a change in factor costs. B) a technological change. C) a change in the price of the good. D) a change in the number of suppliers of the commodity. E) a change in the price of substitute goods. 12) Which of the following is a normative statement? A)...
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