Answer the following statements true (T) or false (F)
1) A nation's export supply curve is downsloping and its import demand curve is upsloping.
2) The equilibrium world price of a product equates the quantities of exports supplied and imports demanded.
3) Economists prefer free trade to tariffs, and prefer tariffs to import quotas.
4) A side benefit of international trade is that it links national interests and increases the
opportunity costs of war.
1) F
2) T
3) T
4) T
You might also like to view...
Which would be considered to be one of the factors that shift the aggregate supply curve in the short run? A change in ________.
A. net exports B. personal income taxes C. government regulation D. consumer spending
Which of the following is an example of a product that is nonexcludable and rival?
A) a motorcycle B) the court system C) Western lowland gorillas D) a NASCAR event
Beachcomber Beatrice spent her entire wealth of $100,000 to build a beach house on the Gulf of Mexico. There is a 10 percent chance that the house will be totally destroyed by a hurricane
Beatrice's utility of wealth schedule is given in the table above. What is the minimum amount that the insurance company would require Beatrice to pay for an insurance policy that pays $100,000 if her beach house is destroyed by a hurricane? (Assume the insurance company has no other costs.) A) $10,000 B) $30,000 C) $40,000 D) $60,000
In the classical model, when an open economy has balanced trade, Say's law does not hold
a. True b. False