What do tests of the gravity equation for trade between Canadian provinces and American states indicate?
a. Individual state and individual provincial GDPs are negatively related to the amount of trade between individual states and provinces.
b. Individual state and individual provincial GDPs are positively related to the amount of trade between individual states and provinces.
c. Individual state and individual provincial GDPs are not at all related to the amount of trade between individual states and provinces.
d. The gravity equation does not apply to U.S.Canadian trade.
Ans: b. Individual state and individual provincial GDPs are positively related to the amount of trade between individual states and provinces.
You might also like to view...
Suppose the production of cotton causes substantial environmental damage because the pesticides used by cotton farmers often make their way into nearby rivers and streams, and are very harmful to fish and other wildlife. If cotton farmers do not have to pay for the environmental damage caused by the pesticides used to grow cotton, then the market equilibrium price will be ________ and the market equilibrium quantity will be ________.
A. inefficiently low; inefficiently high B. inefficiently low; inefficiently low C. inefficiently high; inefficiently low D. inefficiently high; inefficiently high
A proprietorship or partnership can raise funds for expansion in all of the following ways except
A) borrowing from someone or an institution willing to lend the funds. B) taking on a partner or more partners. C) issuing stock through financial markets. D) reinvesting profit back into the business.
High prices redistribute wealth from consumers to firms
a. True b. False Indicate whether the statement is true or false
Why did President George W. Bush feel the need for a stimulus package for the U.S. economy after September 11, 2001? As a conservative, what type of fiscal stimulus would be most appealing to President Bush?