Specialization is a major obstacle to international trade
a. True
b. False
Indicate whether the statement is true or false
False
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Of the following, ________ account(s) for the largest share of imports into the United States
A) food and drinks B) clothing and footwear C) crude oil D) computers E) chemicals
"Because chips and salsa are complements, an increase in the price of chips will cause the demand for salsa to decrease
This initial shift in demand for chips results in a higher price for chips; this higher price will cause the demand curve for chips to shift to the right." Which of the following correctly comments on this statement? A) The statement is false because one cannot assume that chips and salsa are complements for all consumers. B) The statement is false because a change in the price of chips would not change the demand for chips. C) The statement will be true if consumer tastes for chips and salsa do not change. D) The statement is false because salsa is an inferior good; chips are normal goods.