Which of the following is not a criticism of the national defense argument for trade restrictions?
a. National defense only makes sense in the absence of international trade.
b. Stockpiling basic military hardware could eliminate the need to protect the domestic industry.
c. Nearly all industries can make some claim to strategic importance, so such trade restrictions can get out of hand.
d. National defense considerations can outweigh concerns about efficiency.
e. Government subsidies to domestic producers may be more efficient than trade restrictions.
D
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What is the budget surplus if the total amount of taxes collected by a local government is $171,000 and the total amount spent is $90,000?
A) $81,000 B) $100,000 C) $70,000 D) $262,000
Dana spends $10,000 on remodeling a storefront that she then opens as a shoe store. The business has not been very successful, and she needs an additional $3,000 to keep the shoe store open. Which of the following is TRUE?
A) The $10,000 Dana spent on remodeling represents a part of the total variable cost of her business. B) The $3,000 represents her marginal costs of production. C) The $10,000 Dana spent on remodeling is a fixed cost of her business. D) The $3,000 Dana needs to keep the deli open represents her total fixed costs.
A(n) ________ in U.S. interest rates will cause a decrease in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease
Whenever the economy is producing the maximum amount of goods given the level of technology and the amount of resources
A) the number of resources used should be decreased since society must protect its scarce resources. B) the concept of opportunity costs does not exist. C) more goods will be available than customers want to buy. D) the economy is producing efficiently.