Suppose Peru decides to increase its production of emeralds by 2. What is the opportunity cost of this decision?

Refer to the scenario above. If both nations decide to trade, which of the following statements is true?

A) Hawaii should export both tea and coffee. B) Hawaii should import both tea and coffee. C) Hawaii should export tea and South Carolina should export coffee. D) Hawaii should export coffee and South Carolina should export tea.

Which of the following best describes stagflation?

a. Rising unemployment together with economic growth b. Deflation coupled with a decline in money supply c. Deficits coupled with rising unemployment d. Rising unemployment and high inflation rates e. Inflation coupled with balance of trade deficits