International trade shocks
A. are of greater concern to large industrialized countries than to developing countries that rely on exporting a few primary commodities.
B. can be avoided by moderate use of tariffs and non-tariff barriers.
C. include changes in a country's total exports that result from changes in foreign consumer tastes.
D. have no impact on the countries under fixed exchange-rate regimes.
Answer: C
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Over the past several decades there has been rapid growth in international trade. This growth has been due to all but one of the following factors. Which factor has not contributed to the growth of international trade?
A) a change in the tariffs charged on many goods B) favorable changes in government policies C) a reduction in shipping costs D) the spread of reliable communications
The reason only newly produced goods and services are counted in GDP is that ________
A) it is very difficult to impute a value to used goods B) most expenditures on used goods and services take place outside the market C) it does not help economists make better economic predictions because second-hand goods rarely have any residual value D) it allows economists to avoid double counting the production of goods and services E) none of the above
Figure 5-4
Refer to . If the government uses a pollution tax, how much of a tax must be imposed on each unit of production?
a.
$1.90
b.
$1.80
c.
$1.60
d.
$0.30
The slope of the consumption function is equal to the marginal propensity to save.
Answer the following statement true (T) or false (F)