The terms of trade are
A) the terms negotiated in a trade agreement.
B) exports plus imports divided by GDP.
C) the value of the real exchange rate.
D) the ratio of export prices to import prices.
D
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The quantity of real GDP supplied ________ when the price level increases because ________
A) increases; the real wage rate falls B) decreases; investment increases C) increases; the quantity of money increases D) increases; aggregate demand increases E) decreases; the real wage rate rises
Assume that the above figure represents the domestic supply and demand for coffee.The domestic price with no trade is represented by $5.50 . The price with free trade is represented by $4.00
Assume that the government places a $1 per pound tariff on imported coffee, which decreases the domestic quantity demanded of coffee by 100 million pounds and increases domestic production by 100 million pounds. Draw the rectangle that would represent the amount of tax revenue that the government would realize from this tax and calculate the dollar figure.
The portion of the four-sector circular flow model which shows the flow of funds from savers to borrowers is the:
a. product market. b. factor market. c. savings market. d. financial market.
The idea behind comparative advantage in international trade reflects the possibility that one of the trading nations: a. may be able to produce everything relatively more efficiently than the other nation. b. may be able to produce something at a lower dollar cost than the other nation
c. may be able to produce a larger variety of goods than the other nation. d. may be able to produce something at a lower opportunity cost than the other nation.