If the production of a sofa requires the purchase of 3 types of inputs and the production of a harp requires the purchase of 30 types of inputs,
a. the harp-producing firm will buy the sofa-producing firm
b. the sofa-producing firm will buy the harp-producing firm
c. harp production is more likely to be done by firms than sofa production is
d. sofa production is more likely to be done by firms than harp production is
e. both harp and sofa production will always be done by firms because there is more than one input involved in each
Question 2
Which of the following is true?
a. If the Australian dollar depreciates, the Australian trade deficit decreases, since Australian products become cheaper to foreigners.
b. If the Australian dollar depreciates, the Australian trade deficit decreases, since Australian products become more expensive to foreigners.
c. If the Australian dollar depreciates, the Australian trade deficit increases, since Australian products become more expensive to foreigners.
d. If the Australian dollar appreciates, the Australian trade deficit decreases, since Australian products become cheaper to foreigners.
e. If the Australian dollar appreciates, the Australian trade deficit decreases, since Australian products become more expensive to foreigners.
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