When compared with China, the growth of clothing exports originating in Bangladesh is the result of
A) the comparative advantage that Bangladesh has in the production of clothing for export.
B) the absolute advantage that China has in the production of clothing for export.
C) the absolute advantage that Bangladesh has in the production of clothing for export.
D) the comparative and absolute advantage that China has in the production of clothing for export.
E) the comparative and absolute advantage that Bangladesh has in the production of clothing for export.
A
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If the forward exchange rate of the yen in terms of dollars is greater than the spot exchange rate,
A) Japanese interest rates must be higher than U.S. interest rates. B) U.S. interest rates must be higher than Japanese interest rates. C) market participants must be expecting the dollar to appreciate against the yen. D) market participants must be expecting the dollar to depreciate against the yen.
The income-expenditure identity for an open economy is:
A. Im ? Ex = C + I. B. Y = C + I + G. C. Y + G = C + I ? NX. D. Y = C + I + G + NX.
Extractive institutions control political power to:
A) enforce property rights and an equitable legal system. B) allow new businesses to enter and compete in a market. C) transfer resources from the ruling party to society. D) transfer resources from society to the ruling party.
The short-run Phillips curve is drawn for a given expected inflation rate and so it shifts as inflation expectations change
a. True b. False Indicate whether the statement is true or false