Multiple Choice
Suppose that the U.S. price index for its imports rose from 100 to 120 from 2010 to 2011 and the price index for its exports remained unchanged. Which of the following statements is correct?
A) The U.S. terms of trade worsened between 2010 and 2011.
B) The U.S. terms of trade improved between 2010 and 2011.
C) The U.S. terms of trade improved in 2010 and worsened in 2011.
D) There was no change in the U.S. terms of trade between 2010 and 2011.
Correct Answer:
Verified
Correct Answer:
Verified
Q75: Home has a comparative advantage in wheat,
Q76: The slope of the PPF can also
Q77: Assume that two countries (Home and Foreign)
Q78: (Table: Output in the United States and
Q79: Which of the following is the MOST
Q81: (Figure: International Trade Equilibrium) Assume that this
Q82: According to the principle of comparative advantage,
Q83: An increase in the price of imported
Q84: A country's indifference curve describes combinations of
Q85: (Figure: International Trade Equilibrium) Which line shows