Suppose an Economy Produces Only Ice Cream Cones

question 39

Multiple Choice

Suppose an economy produces only ice cream cones. If the price level rises, the value of currency

• A) Rises, because one unit of currency buys more ice cream cones.
• B) Rises, because one unit of currency buys fewer ice cream cones.
• C) Falls, because one unit of currency buys more ice cream cones.
• D) Falls, because one unit of currency buys fewer ice cream cones.

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Definitions:

Obstructive Jaundice

A condition characterized by the yellowing of skin and eyes due to a blockage in the bile ducts, which prevents bile (containing broken down red blood cells) from being processed and eliminated properly.

Cirrhosis

Chronic, irreversible injury to liver tissue; commonly caused by frequent alcohol consumption.

Acute Diarrhea

A condition characterized by the abrupt onset of frequent, loose, water stools that lasts less than 14 days, often due to infection or toxin ingestion.

Protozoan

Heterotrophic, single-celled protist that moves by flagella, cilia, or pseudopodia.