If a society only cares about efficiency and not equity, then
A) all points on the contract curve yield the same level of social welfare.
B) it will not rely on competitive markets to allocate goods.
C) it will maximize the utility of its worst-off member.
D) an equitable outcome is impossible.
A
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If crowding out exists, the expansionary effect of government spending will be:
a. smaller than intended. b. negative. c. infinite. d. larger than intended. e. zero.
Although not the only ones, oligopolists produce goods that
a. have zero cross elasticities b. are unique c. are not differentiated d. have infinite cross elasticities e. have close substitutes
With respect to environmental issues, the GATT:
a. does not allow countries to adopt environmental laws that affect imports. b. allows countries to adopt environmental laws that affect domestic production but not imports. c. allows countries to adopt environmental laws that are applied uniformly against domestic producers and imports. d. allows countries to adopt more stringent laws affecting imports than domestic producers.
Suppose the interest parity condition holds and that the domestic interest rate is less than the foreign interest rate. What does this imply about the current versus future expected exchange rate? Explain
What will be an ideal response?