Which of the following is FALSE about intraindustry trade?
A) Intraindustry trade creates gains from trade.
B) Intraindustry trade is due to comparative advantage.
C) Intraindustry trade may involve heightened competition and lower prices for consumers.
D) Intraindustry trade increases consumer choice.
B
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If the price in Canada was C$50 and the price in Switzerland was SFr 100, absolute purchasing power parity would indicate that:
a. The nominal value of the Swiss franc should rise by 100%. b. The nominal exchange rate should be equal to C$2/SFr. c. The nominal value of the Canadian dollar should rise by 100%. d. The nominal exchange rate should be equal to C$0.50/SFr. e. None of the above.
Antitrust authorities are least likely to take action against:
A. conglomerate mergers. B. horizontal mergers. C. interlocking directorates. D. price-fixing.