To test the gravity equation of trade, a regression model was calculated for two nations, the United States and Canada, testing the correlation among:
a. regional trade, size of GDP, and distance for states and provinces.
b. intra-industry trade, size of GDP, and size of states and provinces.
c. bilateral trade and ratio of GDP for states and provinces.
d. bilateral trade, size of GDP, and distance for states and provinces.
Ans: d. bilateral trade, size of GDP, and distance for states and provinces.
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The trade balance component of aggregate demand is a function of all the following EXCEPT:
a. foreign disposable income. b. domestic disposable income. c. the real exchange rate. d. consumer spending.
Use the figure above to answer this question. Consider a perfectly competitive market experiencing good times
Figure ________ shows a firm maximizing profit in the short run because it produces ________ units and makes an economic profit of ________. A) A; 100; $2 per unit B) A; 90; $3 per unit C) B; 100; $0 per unit D) C; 100; $3 per unit E) C; 110; $2 per unit