Given the information and assuming trade occurs between the three states, we can expect:
A. that there is no means by which Michigan can obtain lettuce while specializing in the
production of autos.
B. that money will not be needed to accomplish the desired exchanges.
C. money to flow counterclockwise from Michigan to Texas to Washington.
D. money to flow clockwise from Michigan to Washington to Texas.
C. money to flow counterclockwise from Michigan to Texas to Washington.
You might also like to view...
A lower domestic price level raises aggregate expenditures and, therefore, shifts the aggregate demand curve to the right
a. True b. False Indicate whether the statement is true or false
In recent years, wireless cellular telephones have been replacing land-line phone service. This is an example of
What will be an ideal response?
According to the classical economists, if the money people wanted to invest was greater than the amount people wanted to save,
A. the interest rate would fall. B. the interest rate would rise. C. there would be inflation. D. there would be a recession.
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, the likely change in capital flows in sectors X and Y will eventually________ in industry X and ________ in industry Y.
A. increase the price to P1; increase the price to P0 B. decrease the price to P0; decrease the price to P1 C. increase the price to P1; decrease the price to P1 D. decrease the price to P0; increase the price to P0