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Flag this Question Question 61pts Consider the demand and supply-(Answered)

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Flag this QuestionQuestion 61pts Consider the demand and supply curves for oranges in Florida and Michigan when trade doesn?t occur.



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If trade occurs between the two states, what do we think will happen to the price of oranges in each state? The price will

rise in Florida and Michigan.
rise in Florida but fall in Michigan.
rise in Florida but stay the same in Michigan.
fall in Florida and Michigan.
fall in Florida but rise in Michigan.
fall in Florida but stay the same in Michigan.
stay the same in Florida but rise in Michigan.
stay the same in Florida but fall in Michigan.
stay the same in Florida and Michigan.


Flag this QuestionQuestion 71pts Consider the demand and supply curves for oranges in Florida and in Michigan when trade doesn?t occur.



Click to view enlarged image.


If trade occurs between the two states, what will happen to the quantity of oranges consumed by people each state? The quantity of oranges consumed

will rise in Florida and Michigan.
will rise in Florida but will fall in Michigan.
will rise in Florida but stay the same in Michigan.
will fall in Florida and Michigan.
will fall in Florida but will rise in Michigan.
will fall in Florida but stay the same in Michigan.
won?t change in Florida but will rise in Michigan.
won?t change in Florida but will fall in Michigan.
won?t change in either state.


Flag this QuestionQuestion 81pts Suppose that one dollar can purchase 0.70 euros and that the price of a Big Mac in France, whose currency is the euro, is 2.10 euros. With purchasing power parity, the price in the United States will be

$1.47
$2.80
$3.00
$14.70


Flag this QuestionQuestion 91pts Suppose that one U.S. dollar can purchase 1.10 Canadian dollars. Of the following options, which represents an example of the law of one price?

A Toyota Camry in the United States costs $20,000 U.S. dollars, while a Toyota Camry in Canada costs 22,000 Canadian dollars.
A large donut from a Tim Hortons (a chain restaurant in Canada) costs $1.65, while a small donut from Dunkin? Donuts (a chain in the United States) costs $0.70.
A winter coat that is suitable for winter in southern climates like Florida sells for $100, while a winter coat that is suitable for the colder Canadian winter sells for $110.
all of these


Flag this QuestionQuestion 101pts What best describes what?s been happening with the U.S. budget in the past 30 years?

The United States has consistently run current account deficits over the past 30 years.
The United States has consistently run current account surpluses over the past 30 years.
Over the past 30 years, the United States has had several years of current account surpluses and several years of current account deficits.


Flag this QuestionQuestion 111pts A trade deficit is defined as the difference in

the tariffs a country receives versus the tariffs paid for by that country.
the GDP in one country versus another country.
investment in one country versus another country.
a country?s imports versus their exports.


Flag this QuestionQuestion 121pts If a U.S. citizen in New York purchases a $1,200 television that was made in Korea, the Korean company holds on to the money. In that case, the U.S. current account _______________ and the U.S. capital account _______________.

increases by $1,200; also increases by $1,200
increases by $1,200; decreases by $1,200
decreases by $1,200; increases by $1,200
decreases by $1,200; decreases by $1,200


Flag this QuestionQuestion 131pts The Chinese government chooses to control the value of its currency so that it is consistently worth some fixed amount of U.S. dollars. What do we call it when a country does this with their exchange rate? ?Select all that apply.

exchange rate manipulation
flexible exchange rate
pegged exchange rate


Flag this QuestionQuestion 141pts Of the following items, some affect the capital account and some affect the current account. Which ones affect the capital account? Select all that apply.

financial assets
gifts
goods
services
real assets


Flag this QuestionQuestion 151pts Which of the following could cause current account deficits? Select all that apply.

weak domestic economic growth
lower savings
government budget deficits
none of these



If trade occurs between the two states, what do we think will happen to the price of oranges in

 

each state? The price will

 

rise in Florida and Michigan.

 

rise in Florida but fall in Michigan.

 

rise...

 

Paper#9209626 | Written in 27-Jul-2016

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