International trade theory implies that international trade is beneficial to all trading countries. However, casual observation leads to the conclusion that official obstruction of international trade flows is widespread
How might you reconcile these two facts?
This question is meant to allow students to offer preliminary discussions of issues, which will be explored in depth later in the book.
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The level of saving in the United States has historically been low relative to the level of domestic investment. Based on this information, we would expect that
A) U.S. private saving is less than its public saving. B) U.S. capital inflows are negative. C) U.S. net foreign investment has been relatively high. D) U.S. net exports have been relatively low.
If the dollar rises in value compared to other currencies, what will happen in the United States?
a. an increase in aggregate demand b. an increase in aggregate supply c. a decrease in aggregate supply d. an increase in the U.S. price level
The marginal productivity principle has some relevance to organizing production in a socialist society.
Answer the following statement true (T) or false (F)
International trade does all the following except
a. allow a country to specialize in producing certain goods and services b. reduce world output c. increase world output d. allow a country's consumption possibilities frontier to lie outside its production possibilities frontier e. allow a country to move to a higher consumption possibilities frontier