International trade under these conditions
Suppose Canada can produce either 120 units of goods, 80 units of services, or any linear combination thereof. Mexico can produce 90 units of goods, 50 units of services, or any linear combination thereof.
a) cannot benefit either country
b) can only benefit Mexico
c) can only benefit Canada
d) can benefit both countries if Canada exports goods and imports services
e) can benefit both countries if Canada exports services and imports goods
e) can benefit both countries if Canada exports services and imports goods
You might also like to view...
To maximize its profit, a firm will hire more workers as long as
A) marginal revenue exceeds the wage rate. B) marginal revenue is less than the wage rate. C) value of marginal product exceeds the wage rate. D) marginal product exceeds the wage rate.
Applying Coase's theorem, if the cost to you from having the airplane seat in front of you reclined is ________ the benefit to the reclining passenger, you should ________
A) greater than; request a payment from the reclining passenger B) less than; request a payment from the reclining passenger C) greater than; make a payment to the reclining passenger D) less than; make a payment to the reclining passenger
You own stock worth an estimated $1 million in the LPL corporation. In addition, you have personal assets worth another $2 million. LPL becomes insolvent, with debts exceeding assets by $15 million. Your personal wealth will decline by
a. $0 b. $1 million c. $1.5 million d. $3 million e. your proportion of the total outstanding stock shares times $15 million
Using the aggregate demand and aggregate supply (AD-SRAS) framework, explain how a large-scale natural disaster would be expected to impact the economy. Discuss how an economist who believes the economy is self-regulating would view the longer term impact of such a disaster, and whether they would advocate the need for government intervention