A. Price inflation in the United States
B. an increase in U.S real income
C. a decrease in the British money supply
D. falling interest rates in Britain
A. 2 francs per dollar
B. 1 franc per dollar
C. $2 per franc
D. $3 per franc
2. euro
3. Chinese Yuan
4. British pound
5. U.S dollar
A. relatively higher U.S labor productivity was associated with relatively higher U.K export ratios
B. relatively high U.K labor productivity was associated with relatively higher U.K export ratios
C. Labor productivity ratios and export ratios were not associated with each other
D. None of the above
A. The stimulus of additional investment spending as market open
B. Economies of large scale production as markets open
C. Additional competition made possible by the opening of markets
D. All of the above
A. Trades at Canada’s marginal rate of transformation
B. Trade at Sweden’s marginal rate of transformation
C. Specializes completely in the production of its export good
D. Specializes partially in the production of its exports goods
A. below the production possibility frontier
B. on the production possibility frontier
C. above the production possibility frontier
D. can’t tell without more information
A. below the production possibility frontier
B. On the production possibility frontier
C. above the production possibility frontier
D. can’t tell without more information
A. Mexico and Denmark
B. Sweden and Denmark
C. Sweden and Spain
D. Mexico and Sweden
A. constant opportunity costs
B. decreasing opportunity costs
C. first increasing and then decreasing opportunity costs
D. increasing opportunity costs