The Japanese demand curve for dollars is downward-sloping because a:
a. higher number of yen per dollar means U.S. goods are cheaper in Japan.
b. lower number of yen per dollar means U.S. goods are cheaper in Japan.
c. lower number of yen per dollar means U.S. goods are more expensive in Japan.
d. lower number of yen per dollar means U.S. goods are less expensive in the U.S.
b
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Empirical evidence from 1960 to 2011 shows that convergence in economic growth is occurring in which of the following cases?
A) Low-income developing countries are catching up to high-income industrial countries. B) Low-income industrial countries are catching up to high-income industrial countries. C) Low-income industrial countries are catching up to high-income developing countries. D) All low-income countries are catching up to all high-income countries.
According to the law of one price, identical products should sell for the same price everywhere if
A) transactions costs are zero. B) consumers have knowledge of the prices charged for products in different markets. C) there are no tariffs or other restrictions on imports or exports. D) firms can prevent consumers from engaging in arbitrage.