Trade restrictions can prevent purchasing power parity from holding because:
A. they can add costs to the selling price because they add to the seller's cost.
B. the time and energy of importation paperwork can add to the cost of the good sold.
C. tariffs can add to the cost of the good sold.
D. All of these statements are true.
Answer: D
You might also like to view...
Is the number of sellers in the market the only thing that is different in each of the four market types economists study?
What will be an ideal response?
Under the Bretton Woods system, the World Trade Organization (WTO) provided foreign currency loans to central banks and approved adjustments to the agreed upon fixed exchange rates
Indicate whether the statement is true or false
If an additional dollar spent on monitoring would reduce shirking by 10 minutes, then the firm will increase the worker's wage by $1 if this caused
A) shirking to increase by less than 10 minutes. B) shirking to decrease by more than 10 minutes. C) shirking to decrease by less than 10 minutes. D) monitoring to become unnecessary.
There is a(n) ________ relationship between a nation's rate of growth in real GDP per capita and bureaucratic inefficiency
A) direct B) inverse C) proportional D) undefined