If productivity growth in Japan exceeds productivity growth in the U.S., to the point that the resource cost in ALL Japanese industries is lower than in the U.S., then
A. there is no feasible way for the U.S. and Japan to continue to trade.
B. mutually beneficial trade is possible.
C. trade between the U.S. and Japan is possible, but only Japan will benefit from it.
D. trade between the U.S. and Japan is possible, but only the U.S. will benefit from it.
B. mutually beneficial trade is possible.
You might also like to view...
Everything else held constant, a decrease in the currency ratio will mean ________ in the M1 money multiplier and ________ in the M2 money multiplier
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
A government policy that makes investments prior to retirement tax exempt until retirement increases the amount saved at any given interest rate
What will be an ideal response?
The windfall profits tax on oil will curtail oil production if
a. oil executives decide to be spiteful. b. the demand for oil is inelastic. c. the supply curve for oil is upward sloping. d. the supply curve for oil is vertical.
If the MPC is 0.8, and the government spends an additional $100b, the overall effect on GDP will be:
A. $400b. B. $180b. C. $500b. D. $120b.