Which of the following best exemplifies why countries engage in international trade?
a. Epic Oil coerced the small island nation Lilliput to open its coastal waters for exploration.
b. Northland exchanged cherries and apples with Southland, which grew oranges and mangoes.
c. King Leo believed he had a duty to share his country’s wealth with neighboring states.
d. Lower Doldra had to trade with Belladonia, the country that conquered and colonized it.
b. Northland exchanged cherries and apples with Southland, which grew oranges and mangoes.
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Assume two people, Tom and Rose, live for two periods and are taxed on consumption in both periods. In period 0, Rose has consumption of 50. In period 1, Rose has consumption of 50. Tom has consumption of 40 in period 0. Use the formula below for lifetime consumption tax liability, R i , to find out what Tom's period 1 consumption must be, to ensure that tax liabilities between the two are equal, if the consumption tax rate is 9% and the rate of interest is 4%,
The supply-determined nature of output and employment is a crucial feature of
a. the Keynesian theory. b. the classical system. c. monetarism. d. the rational expectations model.
According to the graph shown, producer surplus is:
A. $10.
B. $6.
C. $2.
D. $20.
It is unclear whether the free flow of capital is beneficial to all countries. Explain the benefits and costs of allowing capital to move freely
What will be an ideal response?