Assume that for Canada the opportunity cost of producing 1 television set is 2 bushels of wheat. Assume that for the U.S. the opportunity cost of producing 1 bushel of wheat is 2 television sets. All other things being equal:
A. Canada should export televisions and import wheat.
B. Canada should export wheat and import televisions.
C. the United States should export wheat and import televisions.
D. the United States should export televisions and import wheat.
B. Canada should export wheat and import televisions.
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For a "change in the quantity supplied" but not "a change in supply" to occur, there must be a
A) rightward shift of the supply curve. B) rightward shift of the demand curve. C) leftward shift of the demand curve. D) Both answers B and C are correct.
When a deadweight loss occurs in a market, we can be certain that
A) taxes have been imposed in a market. B) the market is a monopoly. C) there underproduction in the market. D) the entire society experiences a loss.
If goods imports are greater than goods exports, the nation is experiencing a:
a. negative balance on current account. b. goods trade deficit. c. capital account imbalance. d. weakening of its currency. e. growth in foreign reserves.
If the United States government wants to eliminate an unfavorable balance of trade, it could
a. reduce tariffs b. encourage imports c. reduce quotas on imports d. depreciate the dollar e. increase taxes on exported goods