The higher the transaction cost of an exchange, the lower the probability of the exchange taking place between the buyer and the seller
Indicate whether the statement is true or false
T
Economics
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Is PPP a theory of exchange rate determination? Explain why or why not?
What will be an ideal response?
Economics
As the level of competition in an industry increases, the price-cost margin approaches:
A) 0. B) 1. C) 10. D) infinity.
Economics
One way to reduce exports is to
A) base trade on comparative advantage. B) base trade on opportunity costs. C) trade with poor countries. D) restrict imports.
Economics
When the dollar appreciates, the prices of imported inputs
a. fall and aggregate supply shifts outward. b. fall and aggregate supply shifts inward. c. rise and aggregate supply shifts outward. d. rise and aggregate supply shifts inward.
Economics