If the average productivity of American firms is rising more quickly than the average productivity of Indian firms, which of the following would you expect to see? (India's currency is the rupee.)
A) an increase in the value of the rupee relative to the dollar
B) a decrease in the quantity demanded of Indian products relative to American products
C) a decrease in the prices of Indian products
D) an increase in the quantity demanded of Indian products relative to American products
B
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Answer the next question using the figure below.
In the diagram, line AB is the U.S. production possibilities curve and line AC shows the consumption possibilities for the U.S. after it has decided to engage in international trade. We can conclude that the United States
A. has decided to trade beef for cheese. B. has chosen to specialize in the production of cheese. C. is relatively more efficient than its trading partners in producing both cheese and beef. D. has chosen to specialize in the production of beef.
Which of the following does a monopoly control, that a perfectly competitive firm does not control?
a. how much to produce b. technology c. what price to charge d. what inputs to use e. plant size
Other things the same, a government budget deficit
a. reduces public saving, but not national saving. b. reduces national saving, but not public saving. c. reduces both public and national saving. d. reduces neither public saving nor national saving.
What does international trade do to a nation’s domestic production possibilities?
What will be an ideal response?