Which is the most accurate statement?
A. The Japanese and Chinese bear most of the blame for our huge trade deficit.
B. Our trade deficit with China has been rising more rapidly than our trade deficit with Japan.
C. Our combined trade deficits with Japan and China now total about $100 billion.
D. Most economists agree that the best way to reduce our trade deficit would be to impose high tariffs on our imports from Japan and China.
B. Our trade deficit with China has been rising more rapidly than our trade deficit with Japan.
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In most cases, the fact that one of the market curves is perfectly inelastic is not sufficient to conclude that a per-unit tax in that market is efficient. A tax on land rents is an exception. Can you explain why?
What will be an ideal response?
How do you think the theory of contestable markets has been used as a means of arguing for weaker enforcement of antitrust laws? Explain
What will be an ideal response?
In countries with very restrictive labor laws , many firms are reluctant to hire workers. This reluctance can
A) reduce cyclical unemployment and the natural rate of unemployment. B) reduce structural unemployment and the natural rate of unemployment. C) reduce frictional unemployment and the natural rate of unemployment. D) increase the natural rate of unemployment.
Economists have found that firms are
A) less likely to change prices as a result of shocks to the aggregate economy than shocks limited to the firm's particular sector. B) more likely to change prices as a result of shocks to the aggregate economy than shocks limited to the firm's particular sector. C) equally likely to change prices as a result of shocks to the aggregate economy as they are shocks limited to the firm's particular sector. D) unlikely to change prices as a result of both shocks to the aggregate economy and shocks limited to the firm's particular sector.