Public goods have to be produced by the public sector
a. True b. False
b
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Of the following, the country with the highest average income per day in the world is
A) Japan. B) the United States. C) France. D) Germany. E) China.
Credibility is important to successful anti-inflationary policy in ________
A) new Keynesian theory B) traditional Keynesian theory C) real business cycle theory D) post classical theory
Actions that ignore the possible long-run benefits of cooperation and focus solely on short-run gains are
A. a zero-sum game. B. a negative-sum game. C. opportunistic behavior. D. tit-for-tat strategic behavior.
Which of the following statements correctly describes international trade in accordance with comparative advantage?
a. Trade is impossible unless there exists a purely competitive market for foreign exchange. b. Trade makes all the citizens of the trading countries better off, which is a clear example of a Pareto improvement. c. Trade may well make some citizens in each trading country worse off. d. Trade requires the judicious application by government of tariffs and quotas in order to discourage production according to comparative disadvantage. e. Trade requires that the economies of the trading partners be of roughly equal size (United States versus Andorra just does not work).