Assume that Blade Runner specializes in producing in-line skates and Hang Ten specializes in producing surfboards. After trade Blade Runner exports 800 pairs of in-line skates and imports 200 surfboards. The terms of trade
A. are 4:1 in-line skates to surfboards.
B. are 1/4:1 in-line skates to surfboards.
C. are 1:4 in-line skates to surfboards.
D. cannot be determined from this information.
Answer: A
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a. environmental studies b. economics c. management d. accounting
The benefits to a country from dollarization include each of the following, except:
A. a lower risk premium since inflationary finance is no longer a possibility. B. no risk of an exchange rate crisis. C. greater and faster integration into world markets, increasing trade and investment. D. increased revenue from seignorage.
If Country X has a higher labor productivity than the rest of the world in the production of a good, then Country X has a comparative advantage in the production of the good.
Answer the following statement true (T) or false (F)
As the price of a Giffen good falls, the consumer will
A) purchase more units. B) purchase fewer units. C) not change the amount purchased. D) There is not enough information to answer this question.