The World Trade Organization is designed to do the following except:
A. enforce trade agreements between nations.
B. monitor trade agreements.
C. ensure that trade doesn't adversely affect the environment.
D. promote free trade internationally.
Answer: C
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If the Fed overshoots when responding to a negative demand shock:
A. it will cause deflation, which the Fed will fight by reducing the growth rate of the money supply. B. it will cause inflation, which the Fed will fight by increasing the growth rate of the money supply. C. it will cause inflation, which the Fed will fight by reducing the growth rate of the money supply. D. it will cause deflation, which the Fed will fight by increasing the growth rate of the money supply.
From these figures we can conclude that
A. China has a comparative advantage in rice.
B. China has a comparative advantage in radios.
C. the United States has a comparative advantage in radios.
D. neither has a comparative advantage in these two goods.