Macroland produces dishes and glassware. Before trade, a set of dishes sells for $100 and a set of glasses sells for $50. When Macroland opens to trade, foreign demand for domestically produced china is strong, raising the price of a set of dishes to $125. But foreign competition reduces the demand for domestically produced glasses, so they now sell for $25 and the a set. Assuming workers cannot move between industries, the wages of workers producing dishes will wages of workers producing glasses will a. increase; not change b. increase; decrease c. decrease; increase O d. increase; increase
Macroland produces dishes and glassware. Before trade, a set of dishes sells for $100 and a set of glasses sells for $50. When Macroland opens to trade, foreign demand for domestically produced china is strong, raising the price of a set of dishes to $125. But foreign competition reduces the demand for domestically produced glasses, so they now sell for $25 and the a set. Assuming workers cannot move between industries, the wages of workers producing dishes will wages of workers producing glasses will a. increase; not change b. increase; decrease c. decrease; increase O d. increase; increase
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter21: International Trade And Comparative Advantage
Section: Chapter Questions
Problem 2TY
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![Macroland produces dishes and glassware. Before trade, a set of dishes sells for $100 and a set of glasses sells for $50.
When Macroland opens to trade, foreign demand for domestically produced china is strong, raising the price of a set of
dishes to $125. But foreign competition reduces the demand for domestically produced glasses, so they now sell for $25
and the
a set. Assuming workers cannot move between industries, the wages of workers producing dishes will
wages of workers producing glasses will
a. increase; not change
b. increase; decrease
c. decrease; increase
O d. increase; increase
A government policy of providing job training for unskilled youths is an example of a policy to promote economic growth
by:
a. increasing human capital.
b.
improving technology.
O c. increasing the availability of natural resources.
O d. increasing physical capital.
If the money supply equals 2,000, velocity equals 3, and real GDP equals 4,000, then the price level equals:
a. 3.
b. 2.
O c. 6,000.
O d. 1.5.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd9d5196d-f12e-495e-b5fe-79d7f952e0f2%2F29be0224-d864-429e-b00e-fe9cf2d62023%2Fsv40t4_processed.png&w=3840&q=75)
Transcribed Image Text:Macroland produces dishes and glassware. Before trade, a set of dishes sells for $100 and a set of glasses sells for $50.
When Macroland opens to trade, foreign demand for domestically produced china is strong, raising the price of a set of
dishes to $125. But foreign competition reduces the demand for domestically produced glasses, so they now sell for $25
and the
a set. Assuming workers cannot move between industries, the wages of workers producing dishes will
wages of workers producing glasses will
a. increase; not change
b. increase; decrease
c. decrease; increase
O d. increase; increase
A government policy of providing job training for unskilled youths is an example of a policy to promote economic growth
by:
a. increasing human capital.
b.
improving technology.
O c. increasing the availability of natural resources.
O d. increasing physical capital.
If the money supply equals 2,000, velocity equals 3, and real GDP equals 4,000, then the price level equals:
a. 3.
b. 2.
O c. 6,000.
O d. 1.5.
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