What does intra-industry trade create for the consumer?
a. greater variety of goods and lower costs
b. greater variety of goods and higher costs
c. lower variety of goods and lower costs
d. lower variety of goods and higher costs
a. greater variety of goods and lower costs
You might also like to view...
For American buyers, there is a decrease in the relative prices of Japanese goods when the ________.
A. inflation rate in Japan is higher than the inflation rate in the United States and there are fixed exchange rates B. inflation rate in the United States is higher than the inflation rate in Japan, and there are flexible exchange rates C. yen appreciates D. dollar appreciates
Two goods are said to be substitutes when a fall in the price of one good:
A) leads to a left shift in the demand for the other good. B) leads to a rise in the price of the other good. C) doesn't affect the demand for the other good. D) leads to a right shift in the demand for the other good.
John paints the exterior of his house and, as a result, his neighbor Christine is able to sell her home for $5,000 more than she could have before. John's house painting:
a. creates a negative externality for Christine. b. shows John is a free rider. c. results in an efficient market outcome for both. d. creates a positive externality for Christine. e. was poorly done.
Suppose that an economy's labor productivity fell by 3 percent and its total worker-hours remained constant between year 1 and year 2. We could conclude that this economy's:
A. real GDP declined. B. capital stock increased. C. production possibilities curve shifted outward. D. actual production moved from one point to another on a fixed production possibilities curve.