Which of the following is likely to shift the production possibilities curve of a nation rightward?
A) An increase in the education and experience of the workforce
B) An increase in the demand for the nation's exports
C) An improvement in the terms of trade that the nation faces
D) An increase in the price of raw materials used by the nation
A
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Find the real exchange rate for the following case: Assume that the representative basket of European goods costs 150 euros and the representative U.S. basket costs $200,
and the dollar/euro exchange rate is $1.20 per euro, then the price of the European basket in terms of U.S. basket is:
If the price of one good increases while the price of the other good and the consumer's income remain unchanged, what will happen to the budget line?
A) The budget line rotates inward from the intercept on the axis of the good that did not change in price. B) The budget line rotates outward from the intercept on the axis of the good that did not change in price. C) The budget line shifts inward without a change in slope. D) The budget line shifts outward without a change in slope.