Suppose firms in Hong Kong can produce 40,000 plastic dolls or 80,000 squirt guns each week, while firms in Taiwan can produce 40,000 plastic dolls or 40,000 squirt guns each week. Therefore, when we compare the two groups:
A) the costs of production are the same in each country.
B) the people in Hong Kong are the most efficient producers of both plastic dolls and squirt guns.
C) the people in Taiwan produce plastic dolls with the same efficiency as Hong Kong.
D) none of the above are true.
D
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A) the money wage rate falls. B) government purchases increase. C) potential GDP decreases. D) income taxes increase. E) the money wage rate rises.
For a country in recession
A. an increase in exports will increase aggregate demand and output B. an decrease in exports will increase aggregate demand and output C. an increase in imports will increase aggregate demand and output D. none of the above
The demand schedule is a description of the behavior of ________ in a market.
A. sellers B. goods or services C. buyers D. labor
The World Trade Organization (WTO) is an international organization dedicated to erecting trade barriers between nations
Indicate whether the statement is true or false