Prices of European goods are rising faster than prices of similar goods in the United States. Consequently Europeans substitute American goods for European goods and the euro depreciates. This phenomenon is the basis of
a. Ricardo's Law.
b. comparative advantage.
c. absolute advantage.
d. purchasing power parity.
d
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Use the following table to answer the question below.(1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040Suppose that market demand is represented by two demanders in columns (1) and (2) and market supply is represented by two suppliers in columns (4) and (5). If the price were artificially set at $6
A. demand would change from (2) to (1). B. a surplus of 50 units would occur. C. the market would clear. D. a shortage of 110 units would occur.
Regional Federal Reserve Banks
A) are located in each of the 50 states. B) are run by the governors of the states in which they are located. C) provide general banking services to the public. D) None of the above answers is correct.
You are analyzing the demand for good X. Which of the following will result in a shift to the right of the demand curve for X?
A) A decrease in the price of X B) An increase in the price of a good that is a complement to good X C) An increase in the price of a good that is a substitute for X D) all of the above
A production possibilities frontier is a line or curve that:
A. shows all the possible combinations of outputs that can be produced using all available resources. B. shows what can be produced when all available resources are efficiently used. C. shows the best combinations of outputs that can be produced using all available resources. D. explains why societies make the choices they do.