Opponents of free trade often want the United States to prohibit the import of goods made in overseas factories that pay wages below the U.S. minimum wage. Prohibiting such goods is likely to
a. cause these factories to pay the U.S. minimum wage.
b. increase the rate of technological advance in poor countries so that they can afford to pay higher wages.
c. increase poverty in poor countries and benefit U.S. firms which compete with these imports.
d. harm U.S. firms which compete with these imports.
c
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Is faster economic growth unambiguously better?
A. No, because growth has an opportunity cost. B. No, because growth serves no useful purpose. C. Yes, because more goods and services are always better. D. Yes, because it expands the production possibilities of an economy. E. Uncertain, economic growth has no answer to this question.
If the required reserve ratio is 10 percent, currency in circulation is $1,200 billion, checkable deposits are $1,600 billion, and excess reserves total $2,500 billion, then the excess reserves-checkable deposit ratio is
A) 1.56. B) 0.48. C) 0.72. D) 0.56.
When a monopolistically competitive firm cuts its price to increase its sales, it experiences a loss in revenue due to the
A) substitution effect. B) income effect. C) price effect. D) output effect.
By not counting the value of intermediate goods when calculating GDP, you avoid
A. year-to-date calculations. B. deficit spending. C. black-market accounting. D. double counting.