Under the gold standard, when a nation had a deficit in its balance of payments,
A) interest rates would rise which would reduce foreign investment.
B) interest rates would fall which would increase foreign investment.
C) gold would flow to foreign residents and the domestic money supply would decrease.
D) gold would flow into the country leading to an increase in the domestic money supply.
C
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Which of the following is NOT an assumption of perfect competition?
A) many firms B) many buyers C) restrictions on entry into the market D) each firm sells an identical product
Protection of an infant industry should be withdrawn once that industry:
a. charges the same price as foreign competitors. b. goes public on the stock exchange. c. raises a large amount of sales revenue. d. achieves sufficient size to compete with foreign firms. e. earns enough profit as a result of the subsidies to remain in business.
The correlated random effects approach cannot be applied to models with many time-varying explanatory variables.
Answer the following statement true (T) or false (F)
The effect of an import quota is
A) to shift the supply curve up by the amount of the quota. B) to lead to a decrease in demand. C) to make the supply curve vertical at the amount of the quota. D) to make the supply curve horizontal at the amount of the quota.