Which of the following is the situation in which a nation shifts its international trade from nations outside a regional trade bloc to nations within the bloc?
A) trade diversion
B) trade deflection
C) trade retention
D) protectionism
Answer: A
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If a financial portfolio manager in the U.S. buys British company stocks in the London Stock Exchange, this would result in ________.
A. an increase in the demand for U.S. dollars in the foreign exchange market B. an increase in the supply of British pounds in the foreign exchange market C. no effect on the demand for British pounds in the foreign exchange market D. an increase in the demand for British pounds in the foreign exchange market
Suppose Joe can prepare 10 sandwiches or 5 pizzas in an hour and Beth can produce 12 sandwiches or 9 pizzas. Which of the following is TRUE?
A) Beth should produce pizza because she has a higher opportunity cost of producing pizza than does Joe. B) Beth should produce pizza because she has a lower opportunity cost of producing pizza than does Joe. C) Joe should produce pizza because he has a higher opportunity cost of producing pizza than does Beth. D) Joe should produce pizza because he has a lower opportunity cost of producing pizza than does Beth.
When there is a shortage, producers raise prices in an attempt to
a. separate the quantity supplied and demanded b. raise the quantity demanded c. equalize the quantity supplied and demanded d. lower the quantity supplied
To close a recessionary gap using fiscal policy, the government can _____
Fill in the blank(s) with the appropriate word(s).