When a nation first begins to trade with other countries and the nation becomes an importer of corn,
a. this is an indication that the world price of corn exceeds the nation's domestic price of corn in the absence of trade.
b. this is an indication that the nation has a comparative advantage in producing corn.
c. the nation's consumers of corn become better off and the nation's producers of corn become worse off.
d. All of the above are correct.
c
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The time consistency problem implies that
A) the central bank should not commit. B) central bank commitment is useful. C) discretion is better than tying your hands. D) there are problems we cannot solve.
Decreasing returns to scale is strictly a short run phenomenon for firms.
Answer the following statement true (T) or false (F)
Which of the following lists correctly ranks countries from most equal to least equal distribution of income?
a. Nigeria, India, Mexico, Germany b. Brazil, United States, India, Japan c. United States, Ethiopia, Japan, South Africa d. Japan, India, United States, Brazil
If the exchange rate is 1.25 New Zealand dollars per U.S dollar, the price of apples is $2 a pound in the U.S. and 1 New Zealand dollar per pound in New Zealand, what is the real exchange rate?
a. 2.50 b. 2 c. 1.25 d. .75