Taiwan exports tools to the United States. Consumers in Taiwan will probably pay a(n) ________ price for tools with free trade than they would with a closed economy.
A. somewhat lower
B. lower
C. higher
D. more fair
Answer: C
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Suppose demand decreases, but there is no change in supply. As the market reaches its new equilibrium:
A. excess supply will lead the price to fall. B. excess demand will lead the price to fall. C. excess supply will lead the price to rise. D. excess demand will lead the price to rise.
Whenever the opportunity costs of goods are significantly different in different countries, there are gains from specialization and trade
a. True b. False
The net national debt is smaller than the gross national debt because
a. some debt is held by foreigners. b. some debt is held by U.S. citizens. c. some debt is held by government agencies. d. the government does not have to pay all of the debt.
There are many concerns for risk-averse lenders. Consider the following: 1 . Lenders are concerned that borrowers with the greatest risk are the ones most likely to actively pursue loans. 2 . Lenders are concerned that real GDP will decline leading to reduced corporate profits. 3 . Lenders are concerned that products produced by certain corporations will become obsolete
a. 1 is market risk; 2 is firm-specific risk b. 2 is market risk; 3 is firm-specific risk c. 3 is market risk; 1 is firm-specific risk d. 2 is firm-specific risk; 3 is market risk