China exports toys to the United States; in a closed economy China must have a domestic price that is ________ the world price of toys.
A. greater than
B. less than
C. equal to
D. close to
Answer: B
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The figure above shows Ronald's budget line. He has a weekly income of $20 and he spends it on hot dogs and hamburgers. The relative price of a hamburger is ________
A) 1/2 hot dog B) 5 hot dogs C) $20 D) 2 hot dogs
A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7 . Assume that the economy is initially in equilibrium. What is the marginal propensity to save of this economy?
a. 0.2 b. 0.3 c. 0.7 d. 0.9 e. 0.6
According to the open-economy macroeconomic model, if the U.S. government budget deficit increases, then both U.S. domestic investment and U.S. net capital outflow decrease
a. True b. False Indicate whether the statement is true or false
Which of the following help to correct for the market failure of imperfect information?
A. nutrition labeling B. homeowner warranties C. professional licensing D. All of the above are correct.