Which of the following is true of an economic union?
A. Free movement of resources, but restricted movement of goods among the member countries
B. Free movement of goods, but restricted movement of resources across the member countries
C. Harmonization of all economic policies in the member countries
D. The members have a common set of tariffs among themselves but the external tariff rates are determined independently.
Answer: C
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Textile workers in the U.S. complain that they cannot compete with low cost foreign textile producers. While some U.S. textile workers may lose their jobs, an advantage is
a. the U.S. gets cheaper textiles b. U.S. imports will become more expensive so U.S. domestic producers gain c. workers in other countries will buy more U.S. clothing exports d. the U.S. can retaliate and its exporting strength is greater e. the U.S. can dump its textiles on other markets without fearing retaliation because U.S. textiles are made with high cost labor
Union membership in the United States has fallen compared to what it was in the 1950s
a. True b. False Indicate whether the statement is true or false
The Surgeon General announces that eating apples promotes healthy teeth. As a result, the equilibrium price of apples
a. increases, and producer surplus increases. b. increases, and producer surplus decreases. c. decreases, and producer surplus increases. d. decreases, and producer surplus decreases.
When the Fed makes bonds more or less attractive, it influences the:
A. Open market decision. B. Money multiplier. C. Portfolio decision. D. Reserve decision.