If international trade is based on product differentiation, for a country the basis for
A. importing is that the price of the imports is the same as the price of the domestic products.
B. exporting is the domestic production of unique models or varieties demanded by some consumers in foreign markets.
C. exporting is that domestic producers can charge a much higher price in the international market.
D. importing is that foreign firms usually enjoy external scale economies.
Answer: B
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A time series graph
A) uses bars rather than lines. B) is not useful if the goal is to determine a variable's trend. C) shows points that are scattered. D) depicts a series of good economic times a nation had. E) shows how a certain variable changes over time.
If the quantity of goods and services produced in an economy decreases,
A) it may be possible for nominal GDP to increase. B) real GDP will certainly increase. C) nominal GDP will certainly decrease. D) it may be possible for real GDP to increase.