People of Moifo, a small island country, use oranges in exchange for various goods and services. If all the oranges are of uniform quality, which of the following is likely to cause a collapse of the orange currency in Moifo?
a. Oranges cannot serve as a medium of exchange.
b. Oranges cannot serve as a unit of account

When the unemployment rate is on the horizontal axis and the real wage is on the vertical axis, an increase in productivity will cause which of the following to occur?

A) The wage-setting and price-setting curves will both shift downward. B) The wage-setting and price-setting curves will both shift upward. C) The price-setting curve to shift downward, and no shift in the wage-setting curve. D) The wage-setting curve to shift upward, and the price-setting curve to shift downward. E) The wage-setting curve to shift downward, and the price-setting curve to shift upward.

Any terms of trade within the limits set by domestic opportunity costs will be mutually harmful, because each country tries to push the other as close to the limits of the terms of trade as possible

a. True b. False Indicate whether the statement is true or false