Which of the following are theories meant to explain "Why Price Levels are Lower in Poorer Countries"?

A) only Bhagwati-Kravis-Lipsey
B) only Balassa-Samuelson
C) only Goldberg-Knetter
D) Bhagwati-Kravis-Lipsey and Balassa-Samuelson
E) Bhagwati-Kravis-Lipsey and Goldberg-Knetter


D

Economics

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The fundamental force that drives international trade is

A) absolute advantage. B) importation duties and tariffs. C) export licenses. D) comparative advantage.

Economics

The above figure shows the reaction functions for two pizza shops in a small isolated town. The Cournot equilibrium is at point

A) a. B) b. C) c. D) d.

Economics

If Jet Cruises chooses to No Ad and Easy Sail then chooses to No Ad, Jet Cruises earns ________ million in net profit and Easy Sail earns ________ million.



Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.

A) $5; $2 B) $2; $4 C) $4; $3 D) $10; $2

Economics

Inequality within countries has been __________, and inequality between countries has been _________ in recent decades.

A. increasing; decreasing B. increasing; increasing C. decreasing; increasing D. decreasing; decreasing

Economics