Trade restrictions tend to make domestic products
A) cheaper because they do not have to compete with foreign goods.
B) cheaper because they do have to compete with foreign goods.
C) more expensive because they have to compete with foreign goods.
D) more expensive because they do not have to compete with foreign goods.
D
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Why do price levels increase when government adopts fiscal or monetary policy to correct the economy when it faces a recession and high unemployment?
Assume, for England, that the domestic price of wine without international trade is higher than the world price of wine. This suggests that, in the production of wine,
a. England has a comparative advantage over other countries and England will export wine. b. England has a comparative advantage over other countries and England will import wine. c. other countries have a comparative advantage over England and England will export wine. d. other countries have a comparative advantage over England and England will import wine.
If the CPI was 110 this year and 100 last year, then
a. the cost of the CPI basket of goods and services increased by 10 percent this year. b. the price level increased by 110 percent this year. c. the inflation rate for this year was 10 percent higher than the inflation rate for last year. d. All of the above are correct.
Long-term chronic unemployment that results even when the economy is producing at a normal rate is called ________ unemployment.
A. global B. cyclical C. structural D. frictional