Suppose you read in the French daily Le Monde that saving in France in 2003 was less than the intended investment French businesses had hoped to make. You would conclude that in 2003, the French economy was
a. in equilibrium, and no change occurred in its national income
b. not in equilibrium, and its national income fell
c. in equilibrium, and its national income fell
d. not in equilibrium, and its national income rose
e. in equilibrium, and its national income rose
D
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This Application discusses the ________ and its enforcement of international trade laws
A) World Trade Organization B) General Agreement on Tariffs and Trade C) European Union D) North American Free Trade Agreement
A country produces only apples and bananas. Moving from point A to point B along its production possibilities frontier, 5 apples are forgone and 4 bananas are gained. What is the opportunity cost of a banana?
A) 1 banana B) 5/4 of an apple C) 4 apples D) 4/5 of an apple E) None of the above answers is correct.