An increase in U.S. prices relative to Japanese prices will
A) decrease both U.S. exports and imports.
B) increase total planned spending on U.S. goods and services.
C) increase U.S. imports and decrease U.S. exports.
D) decrease U.S. imports and increase U.S. exports.
C
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The figure above shows a production possibilities frontier. In the figure, which of the following combinations of the two goods are efficient?
A) 4 million cell phones and 4 million DVDs B) 2 million cell phones and 13 million DVDs C) 5 million cell phones and 15 million DVDs D) no cell phones and 15 million DVDs E) None of these combinations is efficient.
The fall of actual GDP below the level of potential GDP is a signal that the economy is in a recession
a. True b. False Indicate whether the statement is true or false
Economic cost can best be defined as:
A. all costs exclusive of payments to fixed factors of production. B. any contractual obligation that results in a flow of money expenditures from an enterprise to resource suppliers. C. any contractual obligation to labor or material suppliers. D. compensations that must be received by resource owners to ensure their continued supply.
When imports and exports for the same type of good are nearly equal:
a. the laws of comparative advantage break down. b. it is an indication that nearly all the trade is intra-industry. c. exports are probably just "finished" in the nation instead of being fully sourced there. d. there is a very low level of intra-industry trade.