Author Question: We can expect deviations from PPP because of A) quotas and tariffs. B) transportation costs. ... (Read 43 times)

mpobi80 · **on:** Jun 30, 2018

We can expect deviations from PPP because of

A) quotas and tariffs.
B) transportation costs.
C) differentiated goods.
D) All of the above.

Question 2

If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, then

A) the cloth exporter will increase the quantity of cloth produced.
B) the cloth exporter will increase the quantity of cloth exported.
C) the food exporter will increase the quantity of food exported.
D) the cloth exporter will decrease the quantity of cloth exported.
E) the country would import more cloth.