Empirical evidence regarding the effects of devaluation on the balance of trade indicates that
A) devaluation generally improves the BOT.
B) devaluation generally hurts the BOT.
C) no strong generalizations are possible.
D) devaluation has no effect on the BOT.
C
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The minimum level of income per person that is generally necessary for the individual to obtain enough calories, shelter, and clothing to survive is referred to as:
A) safety level of income. B) survival wage rate. C) subsistence level of income. D) minimum wage rate.
The demand function for tickets to Ireland is expressed as
Qd = 1600 - 0.005P + 2 PEngland + 3rain + 2Y, where P is the price for tickets to Ireland, PEngland is the price of tickets to England, rain is the inches of rain Ireland receives annually, and Y is annual household income. Assuming PEngland is $1000, rain is 30 inches per year, and income is 40,000, how much would the price of tickets to Ireland have to fall for consumers to be willing to buy one more trip per year? A) $15 B) $20 C) $50 D) $200
One of the limitation of Five Forces is that they
a. Reduce producer surplus b. For one firm to increase profit, the profit of another participant must decrease c. Does not provide a firm with sustainable competitive advantage d. Both b and c
Which of the following theories applies to strategic behavior?
a. Field Theory b. Game Theory c. Theory of Consumers' Behavior d. Social Contract Theory e. Rational Choice Theory