If Japan has an absolute advantage over the United States in making TVs, then Japan:
A. probably sells TVs to the United States.
B. produces more TVs than the United States using the same resources.
C. has the ability to produce TVs at a lower opportunity cost than the United States.
D. it will have no reason to trade with the US.
B. produces more TVs than the United States using the same resources.
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The above figure shows the U.S. market for replacement cell phone batteries. With free trade, U.S. production is equal to ________ batteries per year. When a $2 tariff is in place, U.S. production is equal to ________ batteries per year
A) 100,000; 300,000 B) 100,000; 500,000 C) 300,000; 100,000 D) 300,000; 500,000 E) 900,000; 700,000
One reason stagflation is difficult to recover from is because:
A. wages are sticky downward. B. input prices increase with output prices. C. less output requires less inputs to be hired. D. prices tend to adjust more quickly downward than upward.
The process of examining the numbers and determining what they mean, what the past was, and what the future will be for a company or entity is known as
a. finance b. budgeting c. economics d. accounting e. none of these
A managed floating exchange rate system is characterised by which of the following:
(a) The exchange rate varies with the market forces of supply and demand. (b) Some intervention by Central Banks is occasionally required. (c) Intervention by Central Banks usually occurs when the currency is either very strong or very weak. (d) All of the above.