Which of the following best describes how the international trade effect works?
A) The price level in the U.S. falls relative to foreign price levels, U.S. goods become relatively less expensive than foreign goods, and both Americans and foreigners buy more U.S. goods.
B) The price level in the U.S. falls relative to foreign price levels, U.S. goods become relatively more expensive than foreign goods, and both Americans and foreigners buy more U.S. goods.
C) The price level in the U.S. rises relative to foreign price levels, U.S. goods become relatively more expensive than foreign goods, and both Americans and foreigners buy fewer U.S. goods.
D) The price level in the U.S. rises relative to foreign price levels, U.S. goods become relatively more expensive than foreign goods, and both Americans and foreigners buy more U.S. goods.
E) a and c
E
You might also like to view...
Roberta spends all of her income on two items, staplers and paper clips. If the price of a stapler increases, there will be a ________ Roberta's demand curve for staplers and a ________ Roberta's demand curve for paper clips
A) rightward shift of; leftward shift of B) leftward shift of; movement along C) movement along; rightward shift of D) movement along; leftward shift of
A firm produces 500 units per week. It hires 20 full-time workers (40 hours/week) at an hourly wage of $15 . Raw materials are ordered weekly and they costs $10 for every unit produced. The weekly cost of the rent payment for the factory is $2,250 . How do the overall costs breakdown?
a. total variable cost is $17,000 . total fixed cost is $2,250; total cost is $19,250 b. total variable cost is $12,000 . total fixed cost is $7,250; total cost is $19,250 c. total variable cost is $5,000 . total fixed cost is $14,250; total cost is $19.250 d. total variable cost is $5,000 . total fixed cost is $2,250; total cost is $7,250