Using the data in the above table, and assuming constant opportunity costs, it is likely that
A) the United States will import food.
B) Mexico will export cloth.
C) the United States will export both cloth and food.
D) Mexico will export both cloth and food.
A
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Suppose the real gross domestic product (GDP) equals $100 billion this year and the nominal gross domestic product (GDP) is $200 billion. This implies that the price level has increased by _____
a. $200 billion b. 50 percent c. $100 billion d. 100 percent e. 200 percent
The primary purpose of NAFTA is to
A. Ensure that there are no losers as the result of trade agreements between Mexico, Canada, and the United States. B. Encourage the development of the Mexican and Canadian economies at the expense of U.S. workers and consumers. C. Increase income in Mexico, Canada, and the United States by encouraging free trade. D. Protect U.S. and Canadian workers from unfair competition from Mexico.
Rent seeking refers to ______.
a. politicians trading votes b. exempting homeowners from certain taxes c. using resources to gain political favor d. choosing not to vote unless it counts
Between World War II and the 1970s, three firms—General Motors, Chrysler, and Ford—produced and sold nearly all the output of the U.S. auto industry. These three firms had
A) an oligopoly. B) monopolistic competition. C) colluded. D) a pure monopoly.