The analysis of international trade suggests that trading companies earn higher than normal profits in:
A. the short run but not in the long run.
B. both the short run and the long run.
C. neither the short run nor the long run.
D. the long run but not in the short run.
Answer: A
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An increase the expected future price of a good
A) increases its demand. B) decreases its demand. C) increases its supply. D) has no effect on either its demand or its supply.
If swimming pools are public goods, then state governments to provide them
a. True b. False
An important determinant of comparative advantage is:
A. homogeneity of climate and natural resources between countries. B. endowment of factors of production. C. equal technology levels across nations. D. well established governmental regulations on trade.
A U.S. resident purchases a bond issued by the Canadian government. If the Canadian dollar appreciates relative to the U.S. dollar over the term of the bond, the U.S. investor will:
A. not see her return affected since exchange rates are flexible. B. see a lower return on her investment as a result. C. see a higher return on her investment as a result. D. none of the answers provided is correct.