Dalton, Georgia has developed into a leading producer of carpets, despite its small size. What is the reason for Dalton's comparative advantage in carpet production?

A) the development of superior process technology
B) an abundant supply of unskilled labor
C) Dalton is located near a railroad hub that it uses to transport carpet.
D) external economies

Answer: D) external economies

Economics

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If the exchange rate changes from 1.5 euros per dollar to 1.0 euro per dollar, the euro has

A) depreciated against the dollar. B) appreciated against the dollar. C) fallen inversely in value. D) depreciated against the euro. E) appreciated against the euro.

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An increase in the price level in the United States will reduce exports and increase imports

Indicate whether the statement is true or false

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