If prices increase only in the United States, then:
A. the income level of people in the US must rise.
B. U.S. goods become relatively less expensive than goods from other countries.
C. the prices of foreign goods must rise.
D. U.S. goods become relatively more expensive than goods from other countries.
Answer: D
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Government's use of eminent domain is a solution to
A) the problem of negative externalities. B) potential monopolization of a market. C) the holdout problem. D) the free-rider problem.
Assume that both the goods and the labor market are perfectly competitive. If at equilibrium, the marginal cost faced by a firm is $6 and the marginal product of the last unit of labor hired by the firm is 2 units, the market wage rate must be:
A) $3. B) $6. C) $12. D) $18.
On the island country of Sunshine where the unit of currency is fish, net exports are 50 fish, saving is 250 fish, net taxes are 100 fish, and the government budget deficit is 175 fish. What is the value of investment?
A) 375 fish B) -375 fish C) 25 fish D) -25 fish
Travel services include purchases of items by residents of one country when they travel to another country
Indicate whether the statement is true or false