Question 1

If the dollar buys fewer bananas in Guatemala than in Honduras, then traders could make a profit by

Accepted Answer

A)  buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Honduras. 
B)  buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Guatemala. 
C)  buying bananas in Guatemala and selling them in Honduras, which would tend to raise the price of bananas in Guatemala. 
D)  buying bananas in Guatemala and selling them in Honduras, which would tend to raise the price of bananas in Honduras. 
A)  buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Honduras. 
B)  buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Guatemala. 
C)  buying bananas in Guatemala and selling them in Honduras, which would tend to raise the price of bananas in Guatemala. 
D)  buying bananas in Guatemala and selling them in Honduras, which would tend to raise the price of bananas in Honduras.

Question 2

If U.S. consumers decrease their demand for cell phones from Finland, then other things the same Finland's

Accepted Answer

A)  exports and net exports fall. 
B)  exports fall and net exports rise. 
C)  imports and net exports fall. 
D)  imports fall and net exports rise. 
A)  exports and net exports fall. 
B)  exports fall and net exports rise. 
C)  imports and net exports fall. 
D)  imports fall and net exports rise.

If the dollar buys fewer bananas in Guatemala than in Honduras, then traders could make a profit by

If U.S. consumers decrease their demand for cell phones from Finland, then other things the same Finland's

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Exam 31: Open-Economy Macroeconomics: Basic Concepts

If the dollar buys fewer bananas in Guatemala than in Honduras, then traders could make a profit by

If U.S. consumers decrease their demand for cell phones from Finland, then other things the same Finland's

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters