"Trade restrictions such as tariffs and quotas are like a blockade that a nation imposes on its own people." Is this statement true?
A) Uncertain, the statement is true if the gains of the residents exceed those of foreigners; otherwise it is false.
B) Yes, both the trade restrictions and a blockade will reduce the gains from specialization and trade.
C) No, a blockade will help the residents of a nation achieve a higher income level; trade restrictions will not.
D) No, trade restrictions will help the residents of a nation achieve a higher income level; a blockade will not.
B) Yes, both the trade restrictions and a blockade will reduce the gains from specialization and trade.
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In the figure above, the shift in the aggregate demand curve from AD1 to AD2 could be result of
A) an increase in government expenditures on goods and services. B) a decrease in the quantity of money. C) a rise in the price level. D) a fall in the price level. E) an increase in taxes.
In the table above, the official U-3 unemployment rate is
A) 50 percent. B) 15 percent. C) 10 percent. D) 5 percent.
Currently, virtually the entire deficit in the U.S. is
a. cyclical. b. structural. c. transitional. d. frictional.
The price used to sell goods or services between subsidiaries in a company is
A) the tax avoidance price. B) set at the marginal cost of the producing subsidiary. C) determined by the minimum of the average cost curve. D) a transfer price.