If the central bank in a foreign country increases its interest rate, then the IS curve of the domestic economy will:
A) shift to the right.
B) shift to the left.
C) not shift at all.
D) shift to the right because U.S. exports will decrease.
Ans: A) shift to the right.
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The above figure shows the U.S. market for wheat. With international trade, the price of wheat in the United States is ________ per ton and the United States ________ wheat
A) $16; exports B) $14; exports C) $14; imports D) $16; imports E) $14; does not trade
If in monopolistic competition in the short run, firms make ________ profits, then in the long run, new firms will enter the market. The ________ each individual firm's product will ________
In the new long-run equilibrium firms will make ________ profit. A) economic; demand for; decrease; zero economic B) normal; demand for; increase; zero economic C) economic; supply of; decrease; an economic D) economic; supply of; increase; zero economic
The idea of comparative advantage is related to
A) the idea of opportunity cost. B) the idea of absolute advantage. C) using the worker with the most diverse sets of skills. D) engineering efficiency.
Italy has a comparative advantage in the production of which product?
