According to the text, identical technologies are a more reasonable assumption for:
A. the shoe industry.
B. the call center industry.
C. neither the shoe nor call center industry.
D. both the shoe and call center industries.
Answer: B. the call center industry.
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Which of the following is a reason behind the rise in US trade over the last 80 years?
A) Rising government expenditure B) Improved bureaucracy C) Improved transportation technology D) Falling consumption expenditure
A current account surplus can occur if ________, all other variables remaining unchanged
A) net exports is negative B) net transfer payments from abroad is positive C) net national savings equals zero D) net factor income from abroad equals zero
How would you define a currency board?
A) the process by which non-pegged interest rates are allowed to fluctuate B) the stockpiling of international reserves by developing countries C) using the dollar to carry out all domestic transactions, making the domestic currency a currency in name alone D) a constraint placed on monetary policy E) The monetary bases is backed entirely by foreign currency and the central bank holds no domestic assets.
Refer to Figure 10.7. A movement from point D to point C could be caused by
A) a positive demand shock. B) an increase in the term premium investors expect in the future. C) an increase in the term structure effect. D) an increase in the expected rate of inflation.