The gains from trade are divided in proportion to the price changes that trade brings to the trading countries.
Answer the following statement true (T) or false (F)
True
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The concept of economic rent can be applied to
A) land only. B) land and natural resources only. C) land, natural resources, and paintings by dead masters only. D) any resource that cannot be replicated exactly.
The net present value of an investment represents
a. an index of the desirability of the investment b. the expected contribution of that investment to the goal of shareholder wealth maximization c. the rate of return expected from the investment d. a and b only e. a and c only
Deviations from the perfectly competitive market can lead to
A. inefficiently high production costs. B. higher prices and smaller outputs. C. less efficient resource allocation. D. All of the responses are correct.
Suppose the real exchange rate of 10 Mexican pesos to the dollar changes to 9 pesos to the dollar. In this situation, the dollar has ________________, making Mexican goods __________ expensive for Americans
A) appreciated; less B) appreciated; more C) depreciated; less D) depreciated; more