Deviations from purchasing power parity will be increasingly higher as international trade tariffs become more restrictive. The main reason for this phenomenon is that:
a. arbitrage activities become less profitable.
b. governments prefer purchasing power parity not to hold.
c. the interest rate parity fails to hold.
d. goods become more differentiated across countries.
e. individuals develop hatred toward closed economies.
a
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One motive for “battling the invisible hand” is
A. unhappiness about the prices that occur in free markets. B. envy toward those who apparently benefit from certain prices. C. a desire to have government “correct” some problems. D. an attempt to produce justice between buyers and sellers. E. All of these responses are correct.
If there are 48 million people in a country's labor force, and the number of potential adult workers in the country is 80 million, the labor force participation rate in the economy is:
A) 90 percent. B) 60 percent. C) 48 percent. D) 80 percent.
If two countries begin trade and both produce a product subject to internal economies of scale, then the country with the ________ rate of production will ________ production until it controls ________ of the market
A) higher; increase; 100% B) higher; increase; 50% C) lower; increase; 100% D) lower; increase; 50% E) higher; decrease; 0%
Which of the following is an in-kind transfer payment?
a. Medicaid b. Social Security c. workers' compensation d. unemployment insurance e. Temporary Assistance to Needy Families