When a country participates in international trade, its consumption possibilities
A. Always exceed its production possibilities.
B. Must still equal its production possibilities.
C. Will increase if it is a rich country and will decrease if it is a poor country.
D. May increase, but its trading partners consumption possibilities will decrease.
Answer: A
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Economists define technology as
A) machines such as computers. B) entrepreneurship. C) absolute advantage. D) society's knowledge concerning the production of goods.
If a large number of laborers shift from fixed-wage contracts to wages that depend on the cost of living adjustments, the long-run aggregate supply curve for the economy will become relatively steeper
a. True b. False Indicate whether the statement is true or false
If the inflation rate in country A is 3.5% and the inflation rate in country B is 3.0%, we should expect the percentage change in the number of units of country A's currency per unit of country B's currency to be:
A. +16.7%. B. +6.5%. C. +0.5%. D. -0.5%.
If the U.S. government went from a budget deficit to a budget surplus then
a. the interest rate and the real exchange rate would increase. b. the interest rate and the real exchange rate would decrease. c. the interest rate would increase and the real exchange rate would decrease. d. the interest rate would decrease and the real exchange rate would increase.