Many economists believe that the collapse of world trade and the depression in the 1930s were linked by a decrease in real income caused by producing on the basis of comparative advantage
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is most likely to cause a leftward shift in the demand curve for the Chinese yuan in exchange of the U.S. dollar?
A) An increase in the demand for U.S. products in China B) A decrease in the demand for Chinese products in the U.S. C) A decrease in the demand for U.S. products in China D) An increase in the demand for Chinese products in the U.S.
Both the trade and budget balance were in roughly zero until the 1980s when the budget deficit increased dramatically and the U.S. trade deficit increased dramatically
However, during the late 1990s the budget deficit shrank—in fact, moving to surplus—at the same time that the U.S. trade deficit increased significantly. Since 2000, the budget deficit has increased significantly, particularly after 2008.What is the relationship between a country's trade balance and its stance as a borrower or lender? Historically, has the U.S. been a net lender or net borrower? Why do you think that this is? Do you think that the U.S. budget situation might have anything to do with this?
Refer to Figure 6.4. If the price of computers is $1,500, then consumer surplus is equal to:
A. $175,000.
B. $535,000.
C. $1,000.
D. $262,500.
If short-run economic profits are greater than zero for firms in a monopolistically competitive market, in the long run we expect:
A. entry barriers to prevent competing firms from entering this market. B. the demand curve for firms in the market to shift to the right. C. the average cost of production to decrease. D. the average cost of production to increase.