While smoking is on the decline in the United States, China is still puffing away madly. That's not because the government is eager to protect its citizens from the hazards of smoking It's because China is eager to protect its own tobacco industry which is a state monopoly. Why did China announce in 2009 that it won't allow foreign companies to build new cigarette factories or enter joint ventures?
A) because China is concerned about the negative effects of smoking
B) because China wants to protect the economic profits its state monopoly makes
C) because China wants to protect jobs
D) because China regulates the tobacco industry
Answer is B) because China wants to protect the economic profits its state monopoly makes
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Given the information in the above table, the relationship between x and y is
A) positive, and the curve becomes flatter as x increases. B) positive, and the curve becomes steeper as x increases. C) positive and linear. D) negative and linear.
Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the equilibrium price?
a. 20 b. 40 c. 60 d. 80
A major advantage of monetary policy over fiscal policy is that monetary
a. policy affects all sectors of the economy equally. b. policy can be put into effect more quickly. c. policy, once implemented, takes effect more quickly. d. authorities see the need for policy more quickly.
Figure 9-4
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In Figure 9-4, if the economy faces an inflationary gap, what must happen to reach potential GDP?
A. The expenditure level must rise and/or the price level must rise. B. The expenditure level must rise and/or the price level must fall. C. The expenditure level must fall and/or the price level must fall. D. The expenditure level must fall and/or the price level must rise.