Exporting nations often agree to voluntary export restraints (VERs) in an attempt to:
A. employ more workers in the importing nation.
B. avoid more restrictive trade policies.
C. increase global welfare.
D. decrease inflation.
Answer: B
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An economic benefit of contracts is that they
a. protect property rights b. encourage involuntary exchanges c. reduce the number of possible Pareto improvements d. encourage market concentration e. encourage specialization
In a certain economy, the components of planned spending are given by: C = 500 + 0.8(Y - T ) - 300rIP = 200 - 400rG = 200NX = 10T = 150 Given the information about the economy above, what would be the impact on induced expenditures of a one-percentage-point increase in the real interest rate?
A. Induced expenditures would decrease by 35 units. B. Induced expenditures would decrease by 7 units. C. Induced expenditures would not change. D. Induced expenditures would increase by 35 units.
Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.
Sources of increasing returns that help raise productivity growth include the following, except:
A. More specialized inputs B. Spreading of development costs C. Network effects D. Low unemployment