The following situation is an example of an import substitution strategy. Costa Rica has a comparative advantage in the production of coffee and, as a result, the Costa Rican government grants incentives to coffee planters to improve their performance in the international marketplace.
Answer the following statement true (T) or false (F)
False
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A depreciation of the U.S. dollar
A) makes U.S. exports more expensive in terms of foreign currency and imports less expensive in terms of the dollar, increasing net exports. B) makes U.S. exports less expensive in terms of foreign currency and imports more expensive in terms of the dollar, increasing net exports. C) makes U.S. exports less expensive in terms of foreign currency and imports more expensive in terms of the dollar, decreasing net exports. D) makes U.S. exports more expensive in terms of foreign currency and imports less expensive in terms of the dollar, decreasing net exports.
If the market price of bicycle frames is $500, and frame welders earn a wage of $50, how many welders will be hired?
a. 10. b. More than 10. c. Fewer than 10. d. Hiring will stop when the MP is 10. e. Hiring will stop when the MP is 0.1.
Macroeconomics primarily examines: a. the behavior of individual households and firms
b. how prices are determined within individual markets. c. the output levels that maximize the profits of business firms. d. broad issues such as national output, employment and inflation.
A distinguishing characteristic of public transfer payments is that:
A. there is a tax on the amount of the subsidy above a certain income level. B. the recipients make no contribution to current production in return for them. C. they are used to subsidize the major transportation carriers to reduce transportation costs. D. they are counted as part of government purchases in the calculation of the gross domestic product.