Trade diversion results in
A) an increase in the total amount of trade in the world.
B) a decrease in the total amount of trade in the world.
C) no change in the total amount of trade in the world.
D) either an increase or decrease in the amount of trade in the world, depending on where trade takes place.
Answer: C
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Consider two countries—A and B. Both the countries are identical except for the fact that institutions are extractive in country A and institutions are inclusive in country B
Given this information, which of the following statements will be true? A) Country A will be characterized by higher output and larger number of entrepreneurs than country B. B) Country A will be characterized by lower output but larger number of entrepreneurs than country B. C) Country A will be characterized by lower output and smaller number of entrepreneurs than country B. D) Country A will be characterized by higher output but lower number of entrepreneurs than country B.
Which of the following was an attempt to reform the financial system following the 2007 recession?
a. Dodd-Frank Act b. Sarbanes-Oxley Act c. The Buffett Rule d. Boles-Simpson Plan
Taylor spends all of her income on tank tops and running shoes, and the price of a pair of running shoes is four times the price of a tank top. In order to maximize total utility, Taylor should buy
a. four times as many tank tops as pairs of running shoes. b. four times as many pairs of running shoes as tank tops. c. both items until the marginal utility of a pair of running shoes is four times the marginal utility of a tank top. d. both items until the marginal utility of a tank top is four times the marginal utility of a pair of running shoes.
When looking at a graph of aggregate demand, which of the following is correct?
a. There are nominal variables on both the vertical and the horizontal axes. b. There are real variables on both the vertical and horizontal axes. c. The variable on the vertical axis is nominal; the variable on the horizontal axis is real d. The variable on the vertical axis is real; the variable on the horizontal axis is nominal