In a two-nation model, the equilibrium world price will occur where:
A. one nation's export supply curve intersects the other nation's import demand curve.
B. exports are exactly twice the level of imports.
C. both nations'export supply curves are horizontal.
D. both nations' import demand curves are vertical.
A. one nation's export supply curve intersects the other nation's import demand curve.
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Economic theory is sometimes referred to as marginalism or marginal analysis because
A) it deals with matters not central to most people's personal lives. B) it emphasizes the effects of additional benefits and additional costs. C) it has such a minor effect on political decisions. D) it is only useful when it is added to a large stock of other knowledge. E) it was created by abstracting from experience.
Analyze the effects of an increase in the European money supply on the dollar/euro exchange rate
What will be an ideal response?
Which of the following statements is TRUE?
A) A Cobb-Douglas production function can have different returns to scale at different output levels. B) It is impossible to have increasing returns to scale for one output level, and decreasing returns to scale for a different output level. C) It is possible to have increasing returns to scale for one output level, and decreasing returns to scale for a different output level. D) None of the above.
As the Fed maintained interest rates at near zero during 2008-2012,
a. the economy recovered and the unemployment rate fell to normal levels. b. households and businesses held larger money balances and the velocity of money fell substantially. c. stock prices declined during 2010-2012, causing the economy to remain weak. d. the earnings senior citizens derived from saving deposits and other forms of savings rose substantially, leading to higher incomes and a strong increase in aggregate demand.