According to economic historians, one result of international trade is that it
A. reduces the world-wide output of goods.
B. reduces the world-wide consumption of goods.
C. causes persistent world-wide inflation.
D. aids in the international transmission of ideas.
Answer: D
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The market value of all final goods and services in an economy produced by resources owned by people of that economy is:
a. personal income. b. national income. c. capital income. d. gross national product. e. gross domestic product.
The demand for labor curve will shift to the left when the demand for a firm's product decreases
a. True b. False Indicate whether the statement is true or false
Figure 9.5Figure 9.5 shows the short-run and long-run effects of an increase in demand of an industry. The market is in equilibrium at point A, where 100 identical firms produce 6 units of a product per hour. If the market demand curve shifts to the right, which of the following statements is true in the short run?
A. The market price rises to $12, which is greater than the average total cost. B. Each existing firm maximizes its profit by producing the output where marginal cost equals $12. C. Each existing firm produces two more units per hour, compared to its initial profit maximizing output level at point A. D. All of these are correct.
The real business cycle theory is based on all of the assumptions below EXCEPT
A. flexible prices. B. the absence of rationality among people. C. pure competition. D. flexible wages.