Refer to the figure at right. Suppose the equilibrium moves from E' to E. An event that could have caused this movement is O A. an increase in the perceived stability of the U.S. economy. OB. an increase in U.S. productivity. OC. an increase in the real interest rate in the United States. O D. an increase in demand for Japanese-produced goods by U.S. residents. Price per Yen (S) E' E D₂ Quantity of Yen per Day D₁
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- What is the so-called home-market effect? Which of the following statements on the home market effect are true? а. Countries with a large (and possibly older) domestic market for a particular commodity are more likely to be only importers of the commodity, but they only very rarely turn into sufficient exporters. b. Countries with a large (and possibly older) domestic market for a particular commodity are more likely to have become exporters of such a commodity too. C. Countries with large domestic markets are become exporters of industrial commodities, while smaller nations focus on services and agriculture. d. The home-market effect is a special condition under which the WTO tolerates the introduction of new tariffs.France exports wine and imports beef. Suppose that French wine becomes more fashionable globally and, hence, the price of wine relative to the price of beef increases in world markets. Then: Select one: a. French exports of wine will increase, French consumption of wine will decrease and French imports of beef will increase b. French exports of wine will increase, French consumption of wine will increase and French imports of beef will decrease Oc. French exports of wine will increase, French consumption of wine will increase and French imports of beef will increase d. French exports of wine will increase, French consumption of wine will decrease and French imports of beef will decreaseJiz What are the effects on U.S. imports and exports when the U.S. experiences economic growth stronger than its major trading partners? Multiple Choice There will be no effect on US imports and exports. U.S. exports will increase more than U.S. imports. US imports will decrease, but U.S. exports will increase. Saved US imports will increase more than U.S. exports. Note: don't use chat bot.
- Assume that there's an increse in US consumers' preference for Japanese automobile. Which of the following chanfes will most likedly take place in the market for dollars a) It will take more yen to purchase the same amount of dollars b) the demand for dollars will increase c) the supply for dollars will increase d) the supply and demand of dollars will decrease e) there will be no change in the foreign exchange marketThe tsunamis that hit Japan in 2011 and India and Sri Lanka in 2004 were devastating, and their effects were felt for many years afterward. Natural disasters of this type as well as international events often result in severe disruptions to the supply ofallegations that meat inspectors and politicians had received bribes to overlook improper meat packing practices and allow sales of tainted food. How would the closing of export markets for a country’s beef products together with a fall in domestic sales of beef products and an increase in the domestic equilibrium quantity be reflected in supply-anddemand diagrams of that country’s foreign and domestic markets for beef in the short run?10. Suppose that increased international trade makes product markets more competitive in the U.S. Given this informa- tion, we would expect to observe which of the following? an upward shift in the PS curve B. a downward shift in the PS curve C. an upward shift in the WS curve D. a downward shift in the WS curve E. none of the above
- If Slovenia exports cloth, then if it increases its production of cloth due to economic growth biased toward cloth, this would O A) decrease its marginal propensity to consume. B) have no effect on its terms of trade. C) improve its terms of trade. D) increase its exports. E) harm its terms of trade.10 In today's world markets, China tends to rely primarily on exports of () A. agricultural products. B. primary products. C. mineral products. D. manufactured products.When Americans start exporting more, in the short run we tend to see the price level and equilibrium output O fall; fall O rise; fall O rise; rise Ofall: rise
- 3. Be sure to label all points. Suppose the domestic autarky relative price M/S=1 and autarky consumption takes place at point A with (M/S) = (75, 100). Production with free trade takes place at point B with (M, S) = (100, 70). Does the country specialize in the production of M or S? The country exports 15 units of M and 45 units of S are imported. Find the consumption bundle (M, S) and label it point C. Sketch the trade triangle. What are the terms of trade? Evaluate the gains from trade in terms of M for this economy.“Exports pay for imports. Yet in 2007 the nations of the world exported about $709 billion more worth of goods and services to the United States than they imported from the United States.” Resolve the apparent inconsistency of these two statements.When countries specialize in the production of goods they have the comparative advantage in, both and will increase O prices, the trade deficit O production, consumption price level, unemployment consumption, unemployment