Economic policy that appears to be ideal in an economics textbook may not be the final policy that is approved by elected politicians because
a. sometimes a politician's self interest may conflict with the national interest.
b. economics professors have a notoriously low voting rate.
c. only policies advocated by the President's Council of Economic Advisors receive enough national attention to interest politicians.
d. Economists cannot explain why politicians do not implement the ideas from their textbooks.
a
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According to this Application, because Argentina pegged its currency to the U.S. dollar, the appreciation of the dollar caused a large trade deficit in Argentina. This trade deficit meant that
A) the demand for Argentinean pesos exceeded the supply of the pesos. B) the demand for Argentinean pesos exceeded the supply of U.S. dollars. C) the supply of Argentinean pesos exceeded the demand for the pesos. D) the supply of Argentinean pesos exceeded the demand for U.S. dollars.
In a first-price sealed-bid auction, ________
A) bidders submit their bids privately B) bidders place their bids one after another publicly C) bidders know each other's bids D) bidders bid above their willingness to pay
A central bank's sale of securities from its portfolio will:
A. decrease the size of its balance sheet. B. only change the composition of its liabilities. C. only change the composition of its assets. D. have no impact at all on the balance sheet.
All of the following are considered input barriers to entry except?:
A) control of a key raw material by a single firm.
B) the ability to obtain financing for capital projects at more favorable rates than potential competitors.
C) the fact that workers in a particular industry belong to a union.
D) a patent on a specialized type of capital that is needed to produce a particular product.