An externality is a cost or a benefit that falls on a third party and is ignored by buyers and sellers involved in the market transaction
Indicate whether the statement is true or false
true
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A person obtains income by selling the services of the resources that he or she owns
a. True b. False Indicate whether the statement is true or false
The world price of a pound of almonds is $4.50 . Before Uruguay allowed trade in almonds, the price of a pound of almonds there was $3.00 . Once Uruguay began allowing trade in almonds with other countries, Uruguay began
a. exporting almonds and the price per pound in Uruguay remained at $3.00. b. exporting almonds and the price per pound in Uruguay increased to $4.50. c. importing almonds and the price per pound in Uruguay remained at $3.00. d. importing almonds and the price per pound in Uruguay increased to $4.50.
What might cause a decrease in current supply of a product?
A. An increase in the product's own price B. A decrease in the price of one of the inputs used to make the product C. New information that leads sellers to believe that the product's price will fall in the future D. New information that leads sellers to believe that the product's price will rise in the future
For this question, suppose the domestic interest rate is 4% and that the foreign interest rate is 7%. And finally, assume that the domestic currency is expected to depreciate by 3% during the coming year. Given this information, we know that
A) individuals will only hold domestic bonds. B) individuals will only hold foreign bonds. C) individuals will be indifferent about holding domestic or foreign bonds. D) the interest parity condition holds.