Answer the following statements true (T) or false (F)
1. The terms of trade will favor a larger nation over a smaller nation.
2. With constant costs in production, specialization tends to proceed to complete-specialization; but with increasing costs, specialization will not be complete.
3. A nation will import a particular product if the world price is less than the domestic price.
4. If a nation starts exporting a product to the rest of the world, then the price of that product in the exporting nation will rise.
5. The world price for a traded product will be between the domestic no-trade prices of the trading nations.
1. F
2. T
3. T
4. T
5. T
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The Federal Reserve's performance in the mid-to-late 1980s, 1990s, and early 2000s has received high marks from economists, even without inflation targeting
Indicate whether the statement is true or false
Considering that the U.S. places a quota on imports of steel from South Korea, which of the following would NOT likely occur?
A) The price of steel in the United States would increase. B) The quantity of steel produced in the United States would increase or stay the same. C) The demand for steel in the United States will increase. D) The quantity demanded for steel in the United States will decrease.
According to the textbook, L. Frank Baum, the author of The Wonderful Wizard of Oz, blamed ____________________ for the economic depression of 1893 and the related hardships faced by farmers and workers
A) the gold standard B) the silver standard C) a massive tornado D) high taxes
A monopolistically competitive firm is one:
A. of many firms that all sell the exact same product. B. that behaves like a monopolist. C. of many firms that sell products that are close but not perfect substitutes. D. of a small number of firms that sell products that are close but not perfect substitutes.