Imagine That There Are Only Two Nations in the World

question 82

Multiple Choice

Imagine that there are only two nations in the world, the United States and Mexico.If Americans buy more goods made in Mexico, other things constant, the

• A)U.S.demand curve for Mexican pesos will shift rightward
• B)U.S.demand curve for Mexican pesos will shift leftward
• C)U.S.supply curve of Mexican pesos will shift leftward
• D)U.S.supply curve of Mexican pesos will shift rightward
• E)U.S.supply curve of Mexican pesos will shift upward

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a particular input, ceteris paribus.

Fertilizer

A substance used to enhance the growth of plants and increase yield by supplying essential nutrients.

Bushels

A unit of volume that is used for quantities of dry commodities (such as grains or produce), where the capacity varies according to the commodity.

Profit

The financial gain made in a transaction or operation, calculated as total revenues minus total costs.