Which of the following is not a reason for international trade?
a. Differences in resource endowments
b. Diseconomies of Scale
c. Differences in tastes
d. All of the above are reasons for international trade.
b
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The demand curve for investment depicts:
a. an inverse relationship between interest rate and aggregate demand. b. an inverse relationship between interest rate and investment c. an inverse relationship between price level and real GDP. d. a direct relationship between interest rate and quantity of money. e. a direct relationship between aggregate demand and real GDP.
Suppose you get a tax refund of $4,000 and instead of spending it on items that had been on your wish list for two years, you put it all in your checking account at the First National Bank of Urbana. And if the legal reserve requirement was 20 percent, your cash deposit of $4,000 in the Urbana bank makes it possible for the banking system to potentially create (including your $4,000 . a total
amount of money of a. $800 b. $3,200 c. $4,000 d. $16,000 e. $20,000
Which of the following would be consistent with a decline in labor productivity?
a. Faster growth in capital formation b. Enhanced worker quality c. Decreased manufacturing production d. High federal government budget surpluses
If a good that generates positive externalities were produced and priced to take into account these spillover benefits, then its:
A. price and output would increase. B. output would increase, but price would remain constant. C. price would increase and output would decrease. D. price would increase, but output would remain constant.