The discovery of a significant new source of oil that can be exported will lead to:
A. appreciation of the currency and a loss of comparative advantage in other sectors.
B. depreciation of the currency and a loss of comparative advantage in other sectors.
C. appreciation of the currency and a gain of comparative advantage in other sectors.
D. depreciation of the currency and a gain of comparative advantage in other sectors.
Answer: A
You might also like to view...
In the figure above, if the market for jackets were perfectly competitive, in long-run equilibrium, each firm would sell ________ jackets per day at ________ per jacket
A) 132; $122 B) 100; $130 C) 100; $80 D) 128; $114
In the Cobb-Douglas production function, Y = KaL1-a, the fraction of income spent as payments to labour is:
A. a. B. 1 - a. C. dependent on the amount of labour employed. D. dependent on the amount of capital employed.
Suppose a nation's 2010 nominal GDP was $972 billion and the general price index was 90. To make the 2010 GDP comparable with the base year GDP, the 2010 GDP must be:
A. deflated to $678 billion. B. deflated to $896 billion. C. inflated to $1,080 billion. D. deflated to $1,080 billion.
Firms have an incentive to substitute labor for capital as the
A. price of capital decreases. B. marginal product of labor decreases. C. price of labor increases. D. price of capital increases.