Differences in price levels
A) explain well actual exchange rate movements.
B) are not capable of explaining well actual exchange rate movements, particularly in the short run.
C) have been small for most countries in the post-World War II period.
D) only can be explained by the fact that little foreign trade actually takes place.
B
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The modification of manufacturing processes so as to reduce the resulting environmental damage is an endeavor that requires capital investment, labor inputs, and technology. What then follows from this statement?
A) Economic growth can benefit the environment. B) Environmental damage is a regrettable but necessary side effect of economic growth. C) The condition of the environment will be better in slower-growing countries. D) The way to reduce pollution is to educate people about its effects.
Patent laws that allow the inventor to maintain monopoly rights to an invention increase the price of the product and
a. increase the profitability of inventive activities, thereby speeding up technological developments. b. increase the profitability of inventive activities, thereby slowing down technological developments. c. decrease the profitability of inventive activities, thereby speeding up technological developments. d. decrease the profitability of inventive activities, thereby slowing down technological developments.