Which of the following is not a trade barrier? Group of answer choices
A. Absolute advantage
B. Export subsidy
C. Embargo
D. Quota
Japan and Korea both harvest wheat and fish. For each bushel of wheat Japan produces, it gives up the opportunity to catch 75 pounds of fish. Korea can harvest one bushel of wheat for every 50 pounds of fish it catches. Which of the follow is true regarding
A. If Japan and Korea were to trade, Japan should specialize in wheat and Korea should specialize in harvesting fish.
B. If Japan and Korea were to trade, Korea should specialize in wheat and Japan should specialize in harvesting fish.
C. The opportunity cost of harvesting wheat is lower in Japan.
D. Japan and Korea would not benefit from trade.
A trade surplus occurs when Group of answer choices
A. Producers oppose free trade
B. The level of exports are greater than imports
C. Producer and
D. The level of imports are greater than exports
Suppose a local economy is experiencing a recession and its marginal propensity to save is 1/4, a $2 million dollar increase in investment will increase
Group of answer choices
A. $500,000
B. $125,000
C. $8 million
D. $266,667
Suppose the marginal propensity to consume (MPC) increases, then with any additional spending, the spending multiplier will have a/an
Group of answer choices
A. inflow of foreign investment
B. large, positive impact on the economy
C. minimal impact on the economy
D. net outflow of capital .
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