The existence of the tradeoff along the PPF means that the PPF is

Other things being constant, if the U.S. real rate of interest exceeds that of its trading partners, we expect

A) political instability in the United States. B) a worsening of the U.S. balance of payments. C) an appreciation of U.S. currency. D) that a "dirty float" will emerge.

Which of the following is an example of a positive externality?

a. A college student buys a new car when she graduates. b. The mayor of a small town plants flowers in the city park. c. Local high school teachers have pizza delivered every Friday for lunch. d. An avid fisherman buys new fishing gear for his next fishing trip.