Of the arguments for limiting trade, which one is the most appealing to economists?
A. protecting the jobs of citizens
B. protecting the profits of companies
C. preventing other countries from getting a comparative advantage by their use of child labor
D. helping an industry that is in trouble
Answer: C
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Farmers who joined the Greenback Party in the late-19th century felt that
a. the government should make efforts to curb the inflation that the country was experiencing. b. farm prices were too high in comparison to the overall price-level of the economy. c. the government should own all transportation and communication facilities. d. an increase in the money supply would benefit debtors.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
If Sarah and Joe are working on a project together and faced with the choices outlined in the figure shown, we can predict the outcome will be that:
A. both Joe and Sarah put forth low effort.
B. Joe will put forth high effort, and Sarah will put forth low effort.
C. Joe will put forth low effort, and Sarah will put forth high effort.
D. both Joe and Sarah put forth high effort.
When the discount rate rises, the cost:
a. of loans to bankers, best customers goes up. b. of loans between banks rises. c. of international loans rises. d. to savings and loans of borrowing money from the public falls. e. to banks of borrowing from the Fed falls.
Refer to the graph shown. Areas C and D represent:
A. the loss of surplus by producers resulting from a monopoly. B. consumer surplus redistributed to the monopolist. C. the cost to society of increasing output from Qm to Qc. D. the loss of surplus by consumers resulting from a monopoly.