A depreciation of the U.S. dollar ________ the price of U.S. imports, and ________ the price of U.S. exports.
A. decreases, increases
B. increases, decreases
C. increases, increases
D. decreases, decreases
Answer: B
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Refer to Table 9-11. Prior to trade, what was the opportunity cost to produce 1 hat in Belize?
A) 1/2 of a clock B) 2/3 of a clock C) 1.5 clocks D) 2 clocks
Marvin's Metal Company produces screws that it sells to Ford, which uses the screws as a component of its cars. In the national income accounts, the screws are classified as
A) inventory. B) final goods. C) capital goods. D) intermediate goods.
Under perfect capital mobility
a. there are no restrictions on buying financial assets, though there may be on buying factories and equipment. b. transactions costs have to be zero. c. differential risk in assets across countries are minimal. d. All of the above e. None of the above
Assuming price elasticity of demand is reported as an absolute value, a price elasticity of demand of 1.2 indicates an:
A. elastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price. B. inelastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price. C. elastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price. D. inelastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.