Ceteris paribus, tariffs and nontariff barriers on imported factor inputs result in
A. An increase in the price level and a decrease in unemployment.
B. A decrease in the price level and a decrease in unemployment.
C. An increase in the price level and an increase in unemployment.
D. A decrease in the price level and an increase in unemployment.
Answer: C
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Currency devaluations hurt
a. Consumers but help suppliers b. Suppliers c. Suppliers but help consumers d. None of the above
According to Adam Smith's invisible hand doctrine:
A. self-interest best serves the interests of society. B. laissez faire must be improved by government intervention. C. producers should serve the best interests of society. D. only laissez faire mercantilism best serves the interests of society.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
At the Larson Bakery the marginal products of the first, second, and third sales clerks are 20, 17, and 11 customers served, respectively. The total product (number of customers served) of the three sales clerks is
A. 11. B. 40. C. 46. D. 48.