International trade between countries typically produces a winner and a loser. Generally, it is the economically more advanced country that gains at the expense of the less developed nation
a. True
b. False
B
You might also like to view...
An increase in the price level causes
A. reduced investment spending, because interest rates increase, but an increase in net exports as U.S. residents buy fewer imports. The change in investment is usually greater than the change in net exports. B. reduced investment spending, because interest rates increase and a decrease in net exports as the higher prices induce foreigners to buy fewer U.S. goods. C. a reduction in net exports as higher priced U.S. goods induce foreigners to buy fewer American products, and an increase in investment spending as the higher prices make businesses more profitable. D. increased government spending, which crowds out investment spending, so that the net effect on aggregate demand is nil.
Trade with the United States during the late 19th and the first half of the 20th century benefited those individuals living in less developed countries by
(a) Boosting their incomes. (b) Restricting markets. (c) Exploiting their resources. (d) Increasing pollution and crime.
Microsoft faces very little competition from other firms for its Windows software. Why isn't the price of the software $1,000 per copy?
a. because the government would not allow such a high price b. because stockholders would not allow such a high price c. because the company would sell so few copies that they would earn higher profits by selling at a lower price d. All of the above are correct.
The relationship between industrial capacity percentage and
A. the unemployment rate is indirect. B. the unemployment rate is direct. C. real GDP is indirect. D. nominal GDP is indirect.