The terms of trade (TOT) is defined as
A) (index of export prices)/(index of import prices).
B) (home-country currency)/(foreign-country currency).
C) .
D)
A
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One mechanism through which increasing public debt may impact the economy is that the resulting
A) increased competition for funds increases interest rates and causes a reduction in investment. B) increased competition for funds decreases interest rates and causes an increase in investment. C) decreased competition for funds decreases interest rates and causes a reduction in investment. D) decreased competition for funds decreases interest rates and causes an increase in investment.
Uncertainty includes all of the following except ____
a. unknown effects of deliberate actions b. incomplete information as to the type of competitor c. random disturbances d. unverifiable claims e. accidents due to weather hazards
Figure 5-2
illustrates the market for a product that generates an external cost. S1 is the private market supply curve, while S2 is the supply curve including the external cost. Which of the following is true?
a.
Relative to economic efficiency, output of the good will be too large and the price too low.
b.
Relative to economic efficiency, output of the good will be too large and the price too high.
c.
Relative to economic efficiency, output of the good will be too small and the price too low.
d.
Relative to economic efficiency, output of the good will be too small and the price too high.
A situation in which one nation produces good A using labor more intensively (relative to capital) than good B and a second nation, producing good A, uses capital more intensively (relative to labor) than good B is called:
A. a reversal of factor intensities. B. a paradox of factor intensities C. backward technology. D. micro intensity.