Which of the following is true?
i. Comparative advantage drives international trade.
ii. Compared to a no-trade situation, in a market with imports, producer surplus is larger.
iii. Tariffs lower the domestic price of imported goods.
A) only i
B) only ii
C) only iii
D) i and ii
E) i and iii
A
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If the government does not provide it, the quantity of a nonexcludable good that private firms will choose to produce is
A. zero. B. more than the optimal amount. C. the optimal amount. D. optimal only if property rights are assigned. E. optimal only if the industry is competitive.
In the new Keynesian model, the immediate effect on inflation of an anticipated aggregate demand shock is ________
A) less than if that event was unanticipated B) greater than if that event was unanticipated C) the same as would develop if that event was unanticipated D) independent of whether or not that event is anticipated or unanticipated
When "rent controls" result in a shortage of housing, landlords
A) use criteria other than price to allocate housing. B) lower the price to allocate the housing. C) attempt to attract renters. D) None of the above.
The concept of "global competitiveness"
A) is not practical because economic well-being is evaluated within each country. B) means that the economic well-being of each nation must be compared with nations with same size population. C) means that the economic well-being of each nation must be compared with nations on the same continent. D) means that the export-import ratio of each nation must be compared.