When a tariff is placed on running shoes, the ________ to local businesses and local consumers are likely to be greater in dollar terms than the ________ to the owner of a shoe factory and its workers
A) gains; gains
B) gains; losses
C) losses; gains
D) losses; losses
Answer: C
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Net exports plus net capital inflows equal:
A. net capital outflows. B. the international trade gap. C. the trade balance. D. zero.
All normal goods have
A) income elasticities of demand greater than 1.0. B) price elasticities of demand greater than 1.0. C) negative price elasticities of demand. D) positive income elasticities of demand.
Figure 5.1 provides support for the Fisher effect, by ________
A) displaying a positive relationship between the inflation rate and the nominal interest rate B) showing how developed economies like the U.S. and Japan have less inflation than economies like Turkey and Indonesia C) focusing on short-run fluctuations, rather than long run averages D) plotting observed, rather than expected inflation E) showing that output is unaffected by changes in the money supply
Marginal analysis suggests that you will engage in more of an activity if the:
A. total benefit of the activity is less than the total cost. B. additional benefit from the activity exceeds the additional cost. C. additional cost of the activity exceeds the additional benefit. D. total benefit from the activity exceeds the total cost.