U.S. goods will become relatively less expensive than goods from other countries if prices were to:
A. increase in the United States only.
B. decrease in the United States only.
C. increase in the United States and foreign countries at the same rate.
D. decrease in the United States and foreign countries at the same rate.
B. decrease in the United States only.
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Which of the following is most likely to be TRUE?
A) Income elasticity of demand for fur coats exceeds that of oatmeal. B) Income elasticity of demand for oatmeal exceeds that of fur coats. C) Income elasticity of demand for fur coats equals that of oatmeal. D) It is not possible to make any prediction about relative income elasticities.
Which of the following industrial policies are effective for developing countries to deal with inflows of capital from overseas?
A. Import substitution, export-led growth, and clustering. B. Import substitution, export-led growth, and crowding out. C. Import substitution, government subsidy, and clustering. D. Market Substitution, government subsidy, and crowding out.
Suppose that domestic personal computer firms complain to Congress that cheap exports are driving them out of business. Congress, worried about job losses, decides to restrict trade, and is considering either a tariff or a quota on imported personal
computers. a . Explain which Congress will choose if it wants to restrict trade, yet please importers. b. Explain which Congress will choose if it wants to use the restriction as a source of revenue. c. How do tariffs and quotas differ?
If nominal Gross Domestic Product (GDP) in 2010 was $500 billion with a price index of 100, what would be the real Gross Domestic Product (GDP) in 2020 if the 2018 nominal Gross Domestic Product (GDP) was $900 billion and the 2020 price index was 140?
A. $800 billion B. $900 billion C. $643 billion D. $540 billion