Some argue that U.S. workers cannot compete with cheap labor from many developing nations. This
A) is true and is a justification for tariffs to protect domestic jobs.
B) is true and it is has been found that tariffs in these cases can save thousands of jobs and benefit the economy.
C) is true but the benefits of free trade are still such that tariffs should not be placed on these industries.
D) is not true, as evidenced by the fact that the United States carries on a lot of trade with countries that have lower wages.
Answer: D
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The relationship between the growth rate of an economic variable, gt, and its level, yt, can be approximated by
A) gt = yt - yt - 1. B) gt = logt - log yt - 1. C) yt = log gt - log gt - 1. D) log gt = yt - yt - 1.
A good that provides external benefits to society has:
a. too few resources devoted to its production. b. too many resources devoted to its production. c. the optimal resources devoted to its production. d. not provided profits to producers of the good.
In a closed economy private saving is $500 billion and the government budget deficit is $100 billion. What is investment?
Suppose that a technological advancement substantially reduces the cost of laser eye surgery. This would cause the equilibrium:
A. price of technology to increase. B. quantity of technology to decrease. C. quantity of laser eye surgery to increase. D. quantity of laser eye surgery to decrease.