In an economy, which of the following is not a source of inefficiency?
A. Externalities
B. Monopoly
C. Public Goods
D. International Trade
Answer: D
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The exchange rate is the
A) opportunity cost of pursuing a nation's comparative advantage. B) price of one country's currency expressed in terms of another country's currency. C) ratio between imports and exports. D) interest rate that is charged on risk-free international capital flow.
An inflationary gap means that the level of real GDP at the short-run macroeconomic equilibrium
A) is less than full-employment GDP. B) equals full-employment GDP. C) is more than full-employment GDP. D) may be less than, more than, or the same as full-employment GDP depending on the level of potential GDP.
Which of the following countries imposes significant tariffs on its agricultural exports?
A) Argentina B) The U.S. C) Canada D) France.
Which of the following is an example of expansionary fiscal policy?
a. Increase taxes. b. Decrease government spending. c. Increase government spending. d. Increase taxes and decrease government spending equally.