The Island Republic is a small, tropical nation with rich agricultural land and a warm climate. Which products might it export at a lower opportunity cost than would a larger country in a cooler climate?
a. cars and trucks
b. pineapples and flowers
c. insurance and banking
d. cotton and lumber
b. pineapples and flowers
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When the price level is low and the demand for domestic goods increases, how does it affect international trade?
A) Prices of all international goods will increase. B) Prices of all international goods will decrease. C) Net exports will decrease. D) Net exports will increase.
Refer to the figure above. In free trade A will import
A) 700 units from country C. B) 700 units from C and 600 units from B. C) 600 units from C. D) 600 units from C and 400 units from B.
How do transfer payments function as negative taxes?
What will be an ideal response?
Which of the following has not been a major factor contributing to the high productivity of labor in the United States?
A. High wage rates B. Technological advancement C. Education and training of workers D. High levels of capital investment