Which one of the following terms of trade is most likely to produce mutually-beneficial exchange between the two nations?
If Nations Quirk and Turk only produce aluminum or oil, the table below shows the maximum output of each nation:
A. 0.5 unit of oil for 1 unit of aluminum
B. 0.5 unit of oil for 2 units of aluminum
C. 1 unit of oil for 0.4 unit of aluminum
D. 1 unit of oil for 4 units of aluminum
C. 1 unit of oil for 0.4 unit of aluminum
You might also like to view...
Because central banks intervene in currency markets, the term ____ has been used to describe the system.
A. planned float B. controlled float C. flexible D. dirty float
Moving along the aggregate supply curve, when the price level rises,
A) the quantity supplied decreases. B) the quantity supplied increases. C) the aggregate demand curve shifts rightward. D) the aggregate demand curve shifts leftward. E) the quantity supplied does not change because the aggregate supply curve is a vertical line.
With two-part pricing
A) the consumer puts down a deposit and then pays the rest when she picks up the goods purchased. B) the average price paid varies with the number of units purchased. C) the consumer is limited in the number of units that can be purchased. D) consumers are required to buy two units of a good.
Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve remains at DA. Which of the following is TRUE?
A) Only quantity supplied has increased. B) Only quantity demanded has decreased. C) Supply has increased. D) Supply has decreased.