The equilibrium price under an import quota is below the price that occurs with an import ban.
Answer the following statement true (T) or false (F)
True
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Comparing fixed to flexible exchange rate, the response of an economy to a temporary fall in foreign demand for its exports is
A) output actually falls less under fixed rate than under floating rate. B) output actually falls more under fixed rate than under floating rate. C) output actually remains the same under fixed rate than under floating rate. D) the currency value grows in a fixed rate system and falls in a flexible system. E) output grows in a fixed rate system and falls in a flexible system.
Given two economic systems, A and B, if economy A has a absolute advantage in the production of widgets, then
A) fewer inputs are necessary to produce widgets in economy A than in economy B. B) economy A must give up less of all other goods to produce widgets than economy B. C) economy A is less efficient in the production of widgets than economy B. D) economy A would not benefit from the specialization of production.
Which of the following describes a problem created by scarcity?
A. The course you need to take in the fall is offered at times that conflict with your work schedule. B. The White House eliminates tours due to budget constraints. C. Your cell phone battery is low and you screen a phone call from afriend in case your significant other calls later. D. All of these.
A large tax cut in the United States should lead to an increase in the trade deficit
a. True b. False Indicate whether the statement is true or false