Larger countries will trade more with one another; this is empirically supported by:
a. the intra-industry trade.
b. the increasing returns to scale.
c. the gravity equation.
d. the comparative advantage.
Ans: c. the gravity equation.
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Suppose the United States enters a recession, what type of unemployment would be most likely to rise as a result of the recession?
Select one: a. Frictional unemployment b. Sectoral unemployment c. Cyclical unemployment d. Seasonal Unemployment
Increased optimism about the future leads to rising prices and falling unemployment in the short run
a. True b. False Indicate whether the statement is true or false
Which of the following would cause the dollar to depreciate?
A) an increase in the demand for dollars B) a decrease in the demand for imports from foreign countries C) a decrease in the supply of dollars D) a decrease in the demand for dollars
If some piece of information causes buyers to expect the price of a good to rise in the future, but sellers take the same information and believe it will have no impact on price, the result is
a. a decrease in supply today b. an increase in supply today c. a decrease in quantity demanded today d. an increase in demand today e. an increase in quantity demanded today