When the Relative Prices of American-Made Goods Go Up,the Result

question 47

Multiple Choice

When the relative prices of American-made goods go up,the result is

• A)an increase in the exports of Canadian-made goods.
• B)a decrease in exports of Canadian-made goods.
• C)a decrease in imports of Canadian-made goods.
• D)no net change in imports or exports of Canadian-made goods.

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Definitions:

Fiscal Policy

Changes in government spending and tax collections designed to achieve full employment, price stability, and economic growth; also called discretionary fiscal policy.

Paradox Of Voting

A situation in democratic decision-making where rational individual choice can lead to an outcome that seems irrational or suboptimal for the group.

Principal-Agent Problem

A dilemma in economics where one party (the agent) is expected to act in the best interest of another party (the principal) but may have a conflict of interest.

Paired-Choice Votes

Paired-choice votes involve voters making choices between pairs of candidates or options rather than voting for a single option amongst many.