As residents of developing countries increase their chocolate consumption, the increased production of cocoa results in
A) increased opportunity cost of cocoa production.
B) decreased opportunity cost of cocoa production.
C) no change in production of other goods and services.
D) increased production of other goods and services.
A
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The most likely impact of an unanticipated increase in the money supply is a(n): a. increase in the real interest rate, which in turn stimulates investment and GDP
b. decrease in the real interest rate, which in turn stimulates investment and GDP. c. decrease in real output, which causes the real interest rate to decline and in turn stimulate investment and GDP. d. increase in real output, which causes the real interest rate to decline.
Suppose monetary neutrality holds and velocity is constant. A 4 percent increase in the money supply
a. increases the price level by more than 4 percent. b. increases the price level by 4 percent. c. increases the price level by less than 4 percent. d. increases real GDP by 4 percent.