Any terms of trade within the limits set by domestic opportunity costs will be mutually harmful, because each country tries to push the other as close to the limits of the terms of trade as possible
a. True
b. False
Indicate whether the statement is true or false
False
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Explain carefully why the assumption of identical technology worldwide eliminates the classical basis for international trade
What will be an ideal response?
A horizontal merger is one in which the merging firms
a. are about the same size b. produce the same good in the same industry c. will control greater than 50 percent of the market d. have never directly competed in the past e. will double the concentration ratio in the industry
If a market is narrowly defined, a product is likely to have fewer substitutes and demand for the product will be less elastic
a. True b. False Indicate whether the statement is true or false
Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent. Then cyclical unemployment is
A) 1 percent. B) 3.5 percent. C) 8 percent. D) 0 percent. E) -1 percent.