Refer to Figure 7-1. Under autarky, the equilibrium price is
A) $54. B) $0. C) $24. D) $30.
D
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In the long run, a country will experience an increasing standard of living only if it experiences
A) a high rate of consumption. B) a slow rate of population growth. C) continuous technological change. D) a high rate of labor force growth.
Suppose that only two goods are produced in an economy. If a country possesses the comparative advantage in the production of one good then it:
A. must also possess the comparative advantage in the production of the other good. B. must also possess the absolute advantage in the production of that good. C. cannot also possess the comparative advantage in the production of the other good. D. cannot also possess the absolute advantage in the production of that good.
As the baby boomer generation retires and takes money out of their retirement accounts, what is expected to happen to the interest rate, ceteris paribus?
A) It will increase. B) It will not change. C) It will decrease. D) It will decrease because of demand-side shocks.
Although foreign exchange market trades are said to involve the buying and selling of currencies, most trades involve the buying and selling of
A) bank deposits denominated in different currencies. B) SDRs. C) gold. D) ECUs.