If income increases in other countries, then U.S.
A. imports will increase.
B. exports will increase.
C. imports will decrease.
D. exports will decrease.
Ans: B. exports will increase.
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Refer to Scenario 5.1. The expected value of the undertaking,
A) according to Sarah, is $75,000. B) according to Sarah, is $100,000. C) according to Sarah, is $110,000. D) according to Aline, is $200,000. E) according to Aline, is $100,000.
A market situation where a small number of sellers dominate the entire industry is called:
a. monopolistic competition. b. monopsony. c. monopoly. d. oligopoly.
Using game theory as an analytical tool, if one large nation imposes tariffs, the total cost is small; however, when several trading partners do the same:
a. the costs are even smaller. b. the costs balance out and there is no harm. c. the costs are the same but the potential gains are much smaller . d. then all nations gain.
Christoph is a landlord in an area where rent controls have set the maximum price he can charge below the competitive equilibrium price. How can a landlord like Christoph be a “winner” in this situation?
a. by expanding his business and buying more properties b. by spending more to maintain his properties in perfect condition c. by breaking the law and finding ways to charge his tenants more d. by increasing demand by charging his tenants even less than the price ceiling