Refer to Table 2-12. If the two countries specialize and trade, who should export sailboats?
A) There is no basis for trade between the two countries.
B) Guatemala
C) They should both be importing sailboats.
D) Honduras
D
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Autonomous expenditure is a type of expenditure that does not depend on
A) GDP. B) wealth. C) expectations. D) rates.
If two groups disagree about a policy, a smaller group that experiences higher benefits per person can be:
A. the one less likely to get its way. B. as successful as a larger group with smaller benefits per person, but typically not more. C. more difficult to bargain due to the small size of the group. D. the one more likely to get its way.
For an imaginary economy, when the real interest rate is 5 percent, the quantity of loanable funds demanded is $1,000 and the quantity of loanable funds supplied is $1,000 . Currently, the nominal interest rate is 9 percent and the inflation rate is 2 percent. Currently,
a. the market for loanable funds is in equilibrium. b. the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded, and as a result the real interest rate will rise. c. the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded, and as a result the real interest rate will fall. d. the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied, and as a result the real interest rate will rise.
What happens to the equilibrium price when supply goes down?
A. the price stays the same B. the prices goes up C. the price goes up, and then goes down D. the price goes down