If movement of labor across countries is costless and painless, it can be expected that
A. all the countries in the world will operate at the full-employment level.
B. the rate of unemployment will fall to zero in all the countries.
C. the gross domestic product of the countries will equalize over time.
D. the wage rates in the countries will equalize over time.
Answer: D
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The above figures show the market for HD televisions. Blu-ray players can be used to play HD movies. If the price of Blu-ray players falls, then which figure shows the effect of this change in the market for HD televisions?
A) Figure A B) Figure B C) Figure C D) Figure D E) None of the figures represent this change.
Suppose that an Italian working in the United States renounces his Italian citizenship and is granted U.S. citizenship. Which of the following will happen?
A. Italian GDP will fall; U.S. GNP will rise. B. Italian GNP will fall; U.S. GNP will rise. C. Italian GDP will fall; U.S. GDP will rise. D. Italian GNP will fall; U.S. GDP will rise.