Refer to Mexico and Japan. What is the cost of producing 1 bolt of clothing in Mexico?
a. 6 hours of labor.
b. 2 bushels of food.
c. 3 bushels of imported Japanese food.
d. 4 bolts of imported Japanese cloth.
b. 2 bushels of food.
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The primary motivation for private foreign investment in developing nations is
A) to eradicate poverty. B) to improve the standard of living for workers. C) the potential for high rates of return. D) to do research in countries with fewer social regulations.
Joan's income has just risen from $940 per week to $1,060 per week. As a result, she decides to purchase 12 percent more lettuce per week. The income elasticity of Joan's demand for lettuce is
A) 0.75. B) 0.90. C) 1.00. D) 1.33.
If production displays economies of scale, the long-run average cost curve is
A) downward sloping. B) below the long-run marginal cost curve. C) upward sloping. D) above the short-run average total cost curve.
The higher the exchange rate, the
a. the lower the dollar cost of imported goods and the higher the demand for foreign exchange. b. higher the dollar cost of imported goods and the lower the demand for foreign exchange. c. higher both the dollar cost of imported goods and the demand for foreign exchange. d. the lower both the dollar cost of imported goods and the demand for foreign exchange.