Countries that restrict foreign trade are likely to
a. forgo the additional surplus that trade allows, but will probably enjoy economies of scale.
b. forgo the additional surplus that trade allows, but will be compensated by a higher rate of technological change.
c. forgo the additional surplus that trade allows, but will have a lower rate of unemployment.
d. have more firms with domestic market power.
d
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Per capita GDP in the United States has declined since 1950
a. True b. False Indicate whether the statement is true or false
What type of economic system is commonly described as being controlled by an "invisible hand"?
a. A traditional economy. b. A command economy. c. A market economy. d. A communist economy.
If President Obama wanted to decrease aggregate demand, which of the following would he tend to favor?
A. An increase in government spending, because it will increase the size of the public sector. B. A decrease in government spending, because it keeps the public sector small. C. An increase in transfer payments, because it has a larger multiplier than tax changes. D. An increase in taxes, because it would not make the public sector smaller.
When people who buy insurance change their behavior after the purchase because they are protected from loss by the insurance, the insurance market is said to face the problem of
A) moral hazard. B) adverse selection. C) asymmetric information. D) economic irrationality.