If a firm located in a country charges high prices on its exports and earns profits on its export sales, then
A. the profit earned by the firm is not considered as a part of the exporting country's gross domestic product (GDP).
B. the majority of gains from international trade accrue to the foreign buyers.
C. the firm emerges as a natural monopolist in the long run.
D. the high export price enhances the exporting country's terms of trade.
Answer: D
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Which of the following is true for the law of demand?
a. Sellers increase the quantity of a good available as the price of the good increases. b. An increase in price results from false needs. c. There is an inverse relationship between the price of a good and the quantity of the good demanded. d. Prices increase as more units of a product are demanded.
The tax multiplier is smaller than the income multiplier
Indicate whether the statement is true or false
When you see a preview of a coming movie at the movie theater, this is
A) informational advertising. B) direct market advertising. C) indirect market advertising. D) persuasive advertising.
Using an aggregate demand graph, illustrate the impact of an increase in the growth rate of U.S. GDP relative to the growth rate of foreign GDP
What will be an ideal response?