When a developing country relies on import substitution,
a. it sacrifices the gains from specialization and comparative advantage
b. replaces low-cost foreign goods with high-cost domestic goods
c. domestic producers, shielded from foreign competition, usually fail to become efficient
d. other countries often retaliate with their own trade restrictions
e. All of the answers are correct
E
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The above figures show the market for oranges. Which figure shows the effect of great growing conditions that produce an above-average sized crop?
A) Figure A B) Figure B C) Figure C D) Figure D
What is production? What economic factors are involved in production?
What will be an ideal response?
An expansionary monetary policy in the United States should
A) decrease the foreign currency price of U.S. exports. B) cause the dollar to appreciate. C) decrease the dollar price of imports. D) decrease net exports.
Because government services are not sold in markets,
A. taxes are used to value their contribution. B. the government tries to estimate their market value and uses this to measure the government's contribution to GDP. C. they are valued at their cost of production. D. they are excluded from measurements of GDP.