Preferential trade agreements have a beneficial trade-diversion effect when they reduce prices for traded goods and stimulate the volume of international trade
a. True
b. False
Indicate whether the statement is true or false
False
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If the supply of coffee falls due to bad weather conditions in coffee-exporting countries, then the
a. price and quantity will rise b. price and quantity will fall c. price will fall and quantity will rise d. price will rise and quantity will fall e. quantity will fall, but price may rise or fall
In explaining the downward-sloping aggregate demand curve, the real money-supply effect is:
a. When the price index falls, the real money supply falls, causing the real risk-free interest rate to fall, and consumption and real investment to rise. b. When the price index falls, the real money supply falls, causing the real risk-free interest rate to fall, and consumption and real investment to rise. c. When the price index falls, the real money supply rises, causing the real risk-free interest rate to fall, and consumption and real investment to rise. d. When the price index falls, central banks intervene to bring the money supply back to where it was, causing the real risk-free interest rate to fall, and consumption and real investment to rise. e. None of the above.
Suppose the average value of in-kind transfers increases by $2,000 from 2013 to 2014 . The poverty rate
a. is more likely to understate the true level of poverty. b. is more likely to overstate the true level of poverty. c. will increase by $2,000 divided by the poverty level. d. Both b and c are correct.
A leftward shift of a supply curve is called a(n):
A. decrease in quantity supplied. B. increase in supply. C. decrease in supply. D. increase in quantity supplied.