If prices of a nation's exported products rise in comparison to prices paid for imports, that nation experiences a:
a. rise in its international terms of trade.
b. decline in its international terms of trade.
c. reduction in its imports.
d. reduction in its exports.
Ans: a. rise in its international terms of trade.
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As the price of a good rises:
A. government regulation becomes more justified. B. firms generally increase the supply of the good. C. firms generally decrease the supply of the good. D. more firms can cover their opportunity cost of producing the good.
The personality of the business leader is necessary for a firm's success
Indicate whether the statement is true or false
When the potential threat of new entrants serves to moderate prices in highly concentrated industries, this is called
a. monopoly power b. barriers to entry c. price discrimination d. contestable markets e. nationalization
By comparing marginal revenue and marginal cost, a firm in a competitive market is able to adjust production to the level that achieves its objective, which we assume to be
a. maximizing total revenue. b. maximizing profit. c. minimizing variable cost. d. minimizing average total cost.