According to the gravity model, a characteristic that tends to affect the probability of trade existing between any two countries is
A) their cultural affinity.
B) the average weight/value of their traded goods.
C) their colonial-historical ties.
D) the distance between them.
E) the number of different product varieties produced by their industries.
D
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Suppose the prices of goods X, Y, and Z are $4, $1, and $5, respectively, and the last unit purchased of good X has a marginal utility MUx = 16 utils. At the point of equilibrium, the marginal utility of the last unit purchased of goods Y and Z will be:
a. MUy = 16 utils and MUz = 16 utils, respectively. b. MUy = 8 utils and MUz = 2 utils, respectively. c. MUy = 4 utils and MUz = 20 utils, respectively. d. MUy = 2 utils and MUz = 4 utils, respectively. e. MUy = 12 utils and MUz = 20 utils, respectively.
The most important factor in reversing the economic decline of 1929-1933 was that
A. the federal government finally balanced its budget. B. the stock market began to rise. C. people became more optimistic. D. the federal government began to spend a huge amount of money.
People respond to incentives. The best way to get people to practice economizing behavior is to:
a. convince them that the behavior will promote the greater good. b. make sure they will benefit from it. c. make sure they understand that everyone benefits from their economizing behavior. d. educate them on how much it will benefit society. e. establish fixed budgets that limit their freedom to change.
The fact that a number of lifeguards lose their jobs at the end of each summer would be counted as
A. structural unemployment. B. frictional unemployment. C. seasonal unemployment. D. cyclical unemployment.