Refer to the above table. Assuming constant opportunity costs, which of the of the following statements is correct if the rate of exchange is 1 movie for 1 cuckoo clock
A) U.S. residents would be willing to export cuckoo clocks, but Swiss residents would not gain from exporting movies at this rate of exchange.
B) Swiss residents would be willing to export movies, but U.S. residents would not gain from exporting cuckoo clocks at this rate of exchange.
C) U.S. residents will gain from exporting movies and Swiss residents will gain from exporting cuckoo clocks at a rate of exchange.
D) U.S. residents will gain from exporting cuckoo clocks and Swiss residents will gain from exporting movies at a rate of exchange.
C
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The basic principle that a country should treat imports from all other countries the same way is
a. quantitative restriction b. export orientation c. most favored nation d. free-trade area e. none of the above
When the government imposes a specific tax per unit on a product, changes in consumer surplus are ________ and changes in producer surplus are ________
A) negative; positive B) positive; positive C) negative; negative D) positive; negative
In the short run, a perfectly competitive firm's production decision aims to maximize profits at the production rate where P = MR = MC.
Answer the following statement true (T) or false (F)
Other things the same, which of the following responses would we expect from an increase in U.S. interest rates?
a. Your aunt puts more money in her savings account. b. Foreign citizens decide to buy fewer U.S. bonds. c. You decide to purchase a new oven for your cookie factory. d. All of the above are correct.