If one country has higher inflation than another, its exchange rate should depreciate.
Answer the following statement true (T) or false (F)
True
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The ________ plots the relationship between prices and the quantity that buyers are willing to purchase
A) supply curve B) isoquant C) indifference curve D) demand curve
A country must always have an absolute advantage in some product
Indicate whether the statement is true or false
Philip is an average contractor in town, and he earns $40,000 a year. Billy is the best contractor in town, and he earns $480,000 a year. Philip's contracting services
a. are valued more by the market relative to Billy's and that explains why his income is higher than Billy's. b. are valued less by the market relative to Billy's and that explains why his income is higher than Billy's. c. are valued less by the market relative to Billy's and that explains why his income is lower than Billy's. d. are more expensive because he receives a compensating differential.
Which of the following will shift the supply curve of good X rightward?
a) the price of Y, a substitute in production for good X, rises b) an increase in the cost of capital used to produce good X c) an increase in the price of energy d) a decrease in the number of suppliers of good X e) a decrease in the wages of workers employed to produce good X