Based on the table below, at what world price would the country import the good?
Price Q Demanded Q Supplied
2 100 70
4 95 75
6 90 80
8 85 85
10 80 90
12 75 95
A) a price below $8
B) at exactly $8
C) a price above $8
D) It is impossible to say.
A
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Which of the following would cause an economy to produce at a point inside its production possibilities curve?
A) the efficient allocation of all factors of production B) population growth C) unemployment and an inefficient use of available resources D) capital accumulation
All of the following, except one, are sources of product differentiation. Which is the exception?
a. product quality b. location c. price d. consumer tastes e. buyers' perceptions
If all other factors are held constant, an increase in imports
A. can cause Gross Domestic Product (GDP) to increase or decrease, depending on whether the imports are purchased by consumers or by business firms. B. causes Gross Domestic Product (GDP) to increase. C. causes Gross Domestic Product (GDP) to decrease. D. causes an increase in exports of the same size.
Three-wheel cars made in North Edsel are sold for 5000 pounds. Four-wheel cars made in South Edsel are sold for 10,000 marks. The real exchange rate between North and South Edsel is four three-wheel cars for three four-wheel cars. The nominal exchange rate between the two countries is
A. 0.50 marks/pound. B. 1.50 marks/pound. C. 0.66 marks/pound. D. 2.00 marks/pound.