The gravity equation uses a calculation to predict the level of bilateral trade based directly on ____ and inversely on _____.
a. wages; technology
b. size of the countries' GDP; the geographic distance between the countries
c. the percent of the countries' GDP in manufacturing; their level of tariffs
d. the growth rates of the countries' GDP; their openness to trade
Ans: b. size of the countries' GDP; the geographic distance between the countries
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Britain taxed windows from 1696 until 1851 . Under the 1747-57 tax rates, you would pay no tax if your home had 0 – 9 windows but if your home had 10 – 14 windows you would pay a tax of 6 pence per window for every window in your home
a. In what way is the window tax similar to the U.S. income tax? b. In what way is the window tax different from the U.S. income tax? c. Do you think from 1747–1757 the number of new homes with 9 or fewer windows increased from the pre-1747 days? Explain.
An internet radio broadcast is
a. excludable and rival in consumption. b. excludable and not rival in consumption. c. not excludable and rival in consumption. d. not excludable and not rival in consumption.
From Table 2.1, which column is likely to be the one for quantity supplied?
A. column A B. neither A nor B C. column B D. either A or B are equally likely
Which of the following will occur as the price of a good decreases?
A. Demand for that good will increase. B. The quantity demanded for that good will increase. C. The demand curve for that good will shift to the right. D. The demand curve for that good will shift to the left.