Initially trade between the United States and Canada is balanced. Then, if a change in the exchange rate reduces the U.S. dollar price of Canadian goods, ceteris paribus, we would expect
A. a trade surplus in Canada.
B. a trade surplus in the United States.
C. a trade deficit in Canada.
D. a trade deficit in both countries.
Answer: A
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The majority of American workers are employed in the manufacturing sector.
Answer the following statement true (T) or false (F)
When he invented the cotton gin in 1793, Eli Whitney exhibited
(a) entrepreneurial behavior. (b) greedy behavior. (c) selfish behavior. (d) immoral behavior.
Figure 33-8
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In Figure 33-8, which of the following movements reflects the closing of an inflationary gap through the economy’s self-correcting mechanism?
A. A to B B. A to C C. C to E D. D to E
Which of the following is most likely to be sold in an oligopoly market?
A) pizza B) wireless service C) electricity D) cotton