Answer the next question on the basis of the following production possibilities tables for two countries, Latalia and Trombonia:Latalia's Production Possibilities ABCDEPork (tons)43210Beans (tons)05101520Trombonia's Production Possibilities ABCDEPork (tons)86420Beans (tons)06121824If these two nations specialize on the basis of comparative advantage
A. Trombonia will produce beans and Latalia will produce pork.
B. Latalia will produce beans and Trombonia will produce pork.
C. Trombonia will produce both beans and pork.
D. Latalia will produce both beans and pork and Trombonia will produce neither.
Answer: B
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Which of the following is a role played by the Fed in the U.S. economy?
A) It acts as a lender of the last resort in case of bank runs. B) It determines the import duty on raw materials being imported into the country. C) It acts as a direct source of funds for new businesses and startups. D) It takes political decisions during periods of recessions.
The biases in the CPI include the
A) old goods, unemployment, and inflation biases. B) new goods, quality change, and substitution biases. C) old goods, new goods, and quality change biases. D) substitution, new goods, and old goods biases.