If a nation's terms of trade rises from 95 to 106, then we can conclude
a. the gains from international trade are reduced
b. the ratio of export to import prices must have decreased
c. its imports have become relatively cheaper compared to its exports
d. its purchasing power is now lower than before
e. that 106 is impossible because the terms of trade cannot exceed 100
C
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The unemployment rate is found by dividing the number of unemployed people by the
A) number of working individuals, and multiplying by 100. B) number of the working-age population, and multiplying by 100. C) sum of working individuals plus unemployed workers, and multiplying by 100. D) number in the labor force, and dividing by 100.
How do economies of scale contribute to the development of an oligopoly?
A) Economies of scale make it legally difficult for new firms to enter. B) Economies of scale make small-scale producers inefficient. C) Economies of scale are based on control of a key resource, without which other firms cannot enter an industry. D) Economies of scale are guaranteed when a patent is granted.