Suppose only 7 percent of Turkey's products go to the United States. Hence, an increase in U.S. imports from Turkey:

a. would have no significant effect on Turkey's domestic income.
b. would significantly increase Turkey's domestic income.
c. would significantly decrease Turkey's domestic income.
d. would significantly increase U.S. domestic income.
e. would significantly decrease U.S. domestic income.


Answer: a. would have no significant effect on Turkey's domestic income.

Economics

You might also like to view...

If the state uses a uniform standard, show that such a ruling would not be cost-effective. Which firm should be abating more, and which firm should be abating less?

Consider the environmental problem created by two paint companies that release chromium wastes into a nearby stream. The state authorities set a standard for the waterway that requires a combined abatement level (A) for chromium of 15 units. Suppose that the two firms, firm 1 and firm 2, face the following marginal abatement cost equations: MAC1 = 3.2A1 and MAC2 = 0.8A2, where costs are measured in thousands of dollars.

Economics

Two reasons for an industrialized country to adopt an exchange-rate targeting regime are if the country ________ conduct successful monetary policy on its own,

and if the country wants to ________ integration of the domestic economy with its neighbors. A) cannot; encourage B) cannot; discourage C) can; encourage D) can; discourage

Economics

Technological change has played a major role in increasing competition in recent years

a. True b. False

Economics

A higher return on saving ______ the amount a household needs to save to achieve any target level of future consumption. This effect on saving is called the _______ effect. If the income effect is large enough, then a reduction in taxes on saving might ______ tax revenues

Fill in the blank(s) with correct word

Economics