Because the PPF is a straight line in the Ricardian model, Foreign's import demand curve is:
a. upward sloping in parts.
b. flat in parts.
c. downward sloping in parts.
d. flat everywhere.
Ans: b. flat in parts.
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The above figure shows a restaurant engaged in monopolistic competition with other restaurants. The equilibrium price at this restaurant is ________ per meal
A) $20 B) $30 C) $50 D) less than $20 E) more than $50
The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $6 per hour, how many hours do students work?
A) 12,000 hours B) 9,000 hours C) 6,000 hours D) None of the above answers is correct.
The key danger facing a country with an exchange rate peg is ________
A) loss of credibility B) loss of export markets C) monetary policy mistakes D) capital controls
Which of the following is an example of a monopolistically competitive industry?
a. computer operating systems b. wheat c. movies d. cable television