The most important driver for the global economy is likely to be:

Suppose that a country with a closed economy opens itself to international trade and becomes a net exporter. In that case, domestic suppliers will supply ________ of that good after it opens itself to international trade.

A. same amount B. less C. more D. none

List some of the problems that may arise when prices are controlled.

What will be an ideal response?

The presence of new goods that are of higher quality than the old goods leads the BLS to

A) update the market basket every time a new good is available. B) do nothing because at least some people still buy the old goods. C) try to separate price differences from improvements in quality. D) actually understate the cost of living when calculating the CPI. E) immediately update the reference base period used in calculating the CPI.

Suppose a U.S. importer agrees to pay a Japanese firm 55,000 yen for a shipment of goods. If the agreement is made when the exchange rate is $1 = ¥100, what is the change in the dollar value of the goods if the exchange rate changes to $1 = ¥110, on the payment-due date?

a. -$50 b. $550,000 c. -$550,000 d. $50 e. -$55,000