The following situation is an example of an export promotion strategy. Guatemala has a comparative advantage in the production of bananas and, as a result, the Guatemalan government grants incentives to banana growers to improve their performance in the international marketplace.
Answer the following statement true (T) or false (F)
True
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Suppose prices are quoted in dollars and transactions are conducted in pesos. The dollar serves as a
A) medium of exchange. B) store of value. C) unit of account. D) all of the above.
The Marshall-Lerner condition holds that a country's current account balance will ________ in response to a real ________ in a nation's currency if ________
A) improve; depreciation; sum of the price elasticities of export and import demand exceeds 1 B) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 1 C) improve; appreciation; sum of the price elasticities of export and import demand exceeds 1 D) improve; appreciation; sum of the price elasticities of export and import demand exceeds 0 E) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 0
Which of the following is an example of an adverse supply shock?
A) OPEC cuts oil production B) a large oil spill in the Gulf of Mexico C) a devastating hurricane off the Louisiana coast D) all of the above E) none of the above
Which of the following best explains why physical therapists' salaries have increased substantially over the last decade?
a. Physical therapists today are smarter. b. The supply of physical therapists has increased. c. The supply of physical therapists has decreased. d. The demand for physical therapists has increased. e. The demand for physical therapists has decreased.