What are the major government policies that restrict trade?
What will be an ideal response?
The major government policies that restrict trade include protective tariffs. These are excise taxes or duties on imported goods. There are also quotas which are limits on the quantities or total value of specific items that may be imported. Trade can also be restricted by licensing requirements and unreasonable standards for a product and by hurdles and delays in the receiving process, which are in effect nontariff barriers. Finally, government can make payments to domestic producers to help them export goods. These payments are export subsidies which give an advantage to domestic producers and artificially increase exports.
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Two goods that are substitutes are:
a. bacon and eggs. b. camera and film. c. tennis racket and tennis balls. d. movie theater tickets and video rentals. e. coffee and cream.
Under the cartel, the individual firm's economic profit is (assuming it obeys its quota) 
Figure 42.2
A. zero. B. the larger of the dashed-line boxes. C. the smaller of the dashed-line boxes. D. between the size of the two dashed-line boxes.
If the graph shown represents Stella's budget constraint, and hairbands cost $4, what must Stella's income to spend on these two items be?
A. $48 B. $16 C. $32 D. Cannot answer this question without more information.
Which of the following is not a necessary condition for a flat BP curve?
A) perfect capital mobility B) perfect asset substitutability C) fixed exchange rates D) floating exchanges rates E) Both C and D