If Japan is relatively capital rich and the United States is relatively land rich, and if food is relatively land intensive then trade between these two, formerly autarkic countries will result in
A) an increase in the relative price of food in the U.S.
B) an increase in the relative price of food in Japan.
C) a global increase in the relative price of food.
D) a decrease in the relative price of food in both countries.
E) an increase in the relative price of food in both countries.
A
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Say your girlfriend has received two free tickets to the Sunday movie matinee and she wants you to go with her. Nevertheless, the movie plays at the same time you were planning to watch the football game on the TV. As a rational person you should decide to go to the movie
A. only if it brings you more pleasure than the cost of the tickets. B. always, since the tickets were free. C. only if the pleasure you will gain from it outweighs the pleasure you would gain from watching the football game. D. only if you would gain some pleasure from it.
The Internet was first developed in the
A. business sector. B. government sector. C. corporate sector. D. college dorm room of Bill Gates.
In Figure 1.6, at which of the following points would the opportunity cost of producing one more SUV be highest?
A. A. B. B. C. C. D. F.
Exchange rate expectations:
A. affect exchanges rates and are more important than fundamentals in the short run. B. affect exchange rates, but only in the long run. C. affect exchange rates but are not as important as fundamentals in the short run. D. do not affect exchange rates in the short run or the long run.