Assume, for Mexico, that the domestic price of beets without international trade is higher than the world price of beets. This suggests that, in the production of beets,
a. Mexico has a comparative advantage over other countries and Mexico will export beets.
b. Mexico has a comparative advantage over other countries and Mexico will import beets.
c. other countries have a comparative advantage over Mexico and Mexico will export beets.
d. other countries have a comparative advantage over Mexico and Mexico will import beets.
d
You might also like to view...
In 2008, the dollar appreciated relative to the euro. This appreciation caused ________ and a ________
A) a movement up along the U.S. aggregate demand curve; decrease in U.S. exports to Europe B) a decrease in U.S. exports to Europe; leftward shift in the U.S. aggregate demand curve C) an increase in U.S. exports to Europe; movement up along the U.S. aggregate demand curve D) a decrease in U.S. exports to Europe; a movement up along the U.S. aggregate demand curve
Deficient information on unsafe products can cause:
a. overconsumption of a product. b. waste of resources used to produce a product. c. consumers to pay a higher price for a product. d. all of the above answers are true. e. none of the above answers a. - c. are true.
Implicit costs are best thought of as the entrepreneur's
a. variable costs b. marginal costs c. accounting costs d. opportunity costs e. sunk costs
Under a flexible exchange rate system an increase in the value of a currency relative to other currencies is a called a(n) ________ and under a fixed exchange rate system an increase in the official value of a currency is called a(n) ________.
A. depreciation; devaluation B. depreciation; appreciation C. revaluation; appreciation D. appreciation; revaluation