According to the Law of One Price, if two countries produce an identical good, assuming transportation costs and trade barriers are not an issue ________
A) the value of the currency in both countries should rise
B) the value of the currency in both countries should fall
C) the price of the good should be the same in the two countries
D) the value of the currency in one country will rise by the same amount that the value of the currency in the other country falls
C
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Use the following table to answer the question below.Giovanni's Production Possibilities ScheduleJorge's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn0160032040120202408080401601204060801600800Jorge should specialize in the production of which good?
A. corn B. green beans C. both D. neither
When did Keynes write his great work, The General Theory of Employment, Interest, and Money?
a. During the 1920s b. During the 1930s c. During the 1940s d. During the 1950s
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve international borrowing/lending balance in the context of the Three-Sector-Model? a. The quantity of real
loanable funds per time period rises and net nonreserve international borrowing/lending balance becomes more positive (or less negative). b. The quantity of real loanable funds per time period rises and net nonreserve international borrowing/lending balance becomes more negative (or less positive). c. The quantity of real loanable funds per time period falls and net nonreserve international borrowing/lending balance becomes more positive (or less negative). d. The quantity of real loanable funds per time period and net nonreserve international borrowing/lending balance remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The large-number-of-sellers condition of perfect competition is met whenÂ
A. there are more sellers than buyers in the market. B. there are more than 50 firms in the industry. C. there are more than 100 firms in the industry. D. each firm is so small relative to the total market that no single firm can influence the market price.