A rise in the real exchange rate is called
A) a real depreciation.
B) a real appreciation.
C) a real bargain.
D) a real devaluation.
B
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Refer to Table 8-17. What is real GDP in 2016, using 2011 as the base year?
A) $3,320 B) $3,690 C) $6,360 D) $7,035
In the short run, a firm may have accounting losses and remain in operation.
Answer the following statement true (T) or false (F)
The HeckscherOhlin model assumes that technology in each industry:
a. Is the same in each nation—each firm has access to the most profitable technology. b. has increasing returns so that one nation will be able to gain a comparative advantage by developing new technology. c. is very different across the world—some nations have access to technology, whereas others do not. d. is hard to access because R&D is very expensive especially for lowincome nations.
Which of the following statements is true?
A) Because of the transitional problems affecting some factors of production, the net benefits of free trade are generally negative. B) Most economists are in favor of opening markets and extending international trade throughout the world. C) Because of the compelling case for free trade, there are very few strong opponents and arguments against free trade remaining in the world today. D) Cheap labor in foreign countries can almost always out-compete expensive labor in the United States.