Moving on a bowed out PPF, what happens to the opportunity cost of its production as a nation specializes more in one product?
What will be an ideal response?
The bowed out PPF indicates that as the amount of the good produced increases, the good's opportunity cost increases.
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Your starting salary is $35,000 per year. After one year, you are given a raise that increases your nominal salary. Which of the following salaries would you prefer the most?
A) a $36,000 salary with a CPI of 103.0 B) a $39,000 salary with a CPI of 110.0 C) a $39,000 salary with a CPI of 109.0 D) a $37,000 salary with a CPI of 106.0 E) a $38,000 salary with a CPI of 104.0
A debtor nation is a country that
A) during its entire history has consistently run a capital account deficit. B) borrows more from the rest of the world than it lends to it. C) lends more to the rest of the world than it borrows from it. D) during its entire history has invested more in the rest of the world than other countries have invested in it. E) during its entire history has borrowed more from the rest of the world than it has lent to it.