Dividing the index of import prices by the index of export prices and multiplying by 100 generates a country's terms of trade
Indicate whether the statement is true or false
F
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At long-run equilibrium in monopolistic competition, there is
A. neither allocative nor productive efficiency. B. both allocative and productive efficiency. C. allocative efficiency. D. productive efficiency.
When a firm obtains market power through barriers to entry created not by the firm, but by the government, it is referred to as:
A) legal market power. B) regulated market power. C) firm-biased market power. D) differentiated market power.
U.S. firms can produce and sell electric fans for $25. The United States can also import electric fans from China at $40 each and from Canada at $45 each. Electric fans made in the United States, China, and Canada are identical. Currently, the United States imposes a 30% tariff on imported electric fans. From which of the following countries will the United States import fans?
a. China b. Canada c. It will import fans from neither China nor Canada. d. It will import fans from both China and Canada.
When real interest rates in other countries rise relative to that in the U.S., other things being equal, we would expect the U.S. dollar to:
A. Appreciate B. Depreciate C. Inflate D. Deflate