For ________, there is a range of exchange rates that can lead automatically to both countries realizing the gains from specialization and comparative advantage.
A. any pair of countries
B. only industrialized countries
C. very few countries
D. only democratic countries
Answer: A
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According to the law of supply
A) people buy more of a good when the price increases. B) people buy less of a good when the price decreases. C) producers provide more of a good when the price decreases. D) producers provide less of a good when the price decreases.
A consumer values a car at $30,000 and a producer values the same car at $20,000 . The transaction will not take place if a tax is imposed
a. equal to the seller surplus b. smaller than the total surplus c. larger than the total surplus d. smaller than the buyer surplus
One way the consumer price index (CPI) differs from the GDP chain price index is that the CPI:
a. uses current year quantities of goods and services. b. includes separate market baskets of goods and services for both base and current years. c. includes only goods and services bought by typical urban consumers. d. is bias free.
A tariff on shoes would lead to: a. a higher price for shoes for domestic consumers
b. greater sales of shoes at higher prices for domestic producers. c. lower sales of foreign shoes. d. all of the above