The gravity model explains why
A) trade between Sweden and Germany exceeds that between Sweden and Spain.
B) countries with oil reserves tend to export oil.
C) capital rich countries export capital intensive products.
D) intra-industry trade is relatively more important than other forms of trade between neighboring countries.
E) European countries rely most often on natural resources.
A
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The federal government has the power to investigate and to try to block
a. only voluntary mergers between firms. b. only hostile takeovers. c. only friendly takeovers. d. any combining of the ownership of previously independent firms that increases concentration.
In an effort to balance the federal budget, an increase in Social Security taxes is passed. What is the most likely effect of this on equilibrium GDP?
a. GDP will increase. b. GDP will decrease. c. GDP will not change but prices will rise. d. GDP will not change but employment will increase.