Economics

Suppose the United states production possibility frontier was flatter

Suppose the United states production possibility frontier was flatter to the widget axis, whereas Germany’s was flatter to the butter axis. We now learn that the German wage doubles, but U.S. wages do not change at all. We now know that A) the United States has no comparative advantage. B) Germany has a comparative advantage […]

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Date: September 10th, 2020

The shipbreakers of Alang are A) a metaphysical representation of the

The shipbreakers of Alang are A) a metaphysical representation of the WTO, deriving from Edgar Rice Burroughs’ Princess of Mars. B) an early version of the Russian Ice-breaker of the Dnieper-Alang class. C) a capital-intensive industry. D) competing with pollution-producing industries in countries outside of India. E) doing environmentally conscious work.   ANSWER D

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Date: September 10th, 2020

Faced with the evidence of poor working conditions and low wages in th

Faced with the evidence of poor working conditions and low wages in the border maquiladoras, economists A) shrug their shoulders and ignore the issue. B) agree that trade theory is thus proven hollow and internally inconsistent. C) argue that U.S. consumers should not consume lettuce. D) argue that the poor conditions and low wages are […]

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Date: September 10th, 2020

Suppose the United States’ production possibility frontier was flatter

Suppose the United States’ production possibility frontier was flatter to the widget axis, whereas Germany’s was flatter to the butter axis. We now learn that the German mark sharply depreciates against the U.S. dollar. We now know that A) the United States has no comparative advantage B) Germany has a comparative advantage in butter. C) […]

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Date: September 10th, 2020

Under a flexible-price monetary approach to the exchange rate A) when

Under a flexible-price monetary approach to the exchange rate A) when the domestic money supply falls, the price level would eventually fall, increasing the interest rate. B) when the domestic money supply falls, the price level would fall right away, causing a reduction in the interest rate. C) when the domestic money supply falls, the […]

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Date: September 10th, 2020

Which of the following statements is TRUE about a vehicle currency? A

Which of the following statements is TRUE about a vehicle currency? A) It is widely used to denominate contracts made by parties who reside in the country that issues the vehicle currency. B) The dollar is sometimes called a vehicle currency because of its pivotal role in many foreign exchange deals. C) There is much […]

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Date: September 10th, 2020