Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) If business income is total output minus total labor cost, then business income in country B after emigration occurs:
A. Increases by area vqsw
B. Increases by area qsr
C. Decreases by area qsr
D. Decreases by area vqsw
D. Decreases by area vqsw
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In the figure above, the United States ________ airplanes per year
A) imports 500 B) exports 500 C) exports 400 D) imports 400 E) exports 200
You turn to the Treasury bond market page of a newspaper and look under the column headed "Bid" and see that it says, "125:8" this indicates that
A. the price that the buyer is willing to pay for this bond is $125.08. B. the price that the buyer is willing to pay for this bond is $1,252.50. C. the price that the seller is willing to sell this bond for is $125.80. D. the price that the seller is willing to sell this bond for is $125.08.
Which of the following about trade is true?
a. Trade does not produce anything new; therefore, it cannot create value. b. The value of a good is determined by the cost of the material resources required for its production. c. The value of a good generally depends on who uses it and circumstances such as when and where it is used. d. All of the above are true.
In the 1980s, the U.S. government budget deficit rose. At the same time the U.S. trade deficit grew larger, the real exchange rate of the dollar appreciated, and U.S. net capital outflow decreased. Which of these events is contrary to what the open-economy macroeconomic model predicts concerning the effects of an increase in the budget deficit?
a. the U.S. trade deficit grew b. the real exchange rate of the dollar appreciated c. U.S. net capital outflow fell d. None of the above is contrary to the predictions of the model.