The world prices of primary products are less likely to decline if
A. the major importers of the primary products impose high tariff barriers on their imports.
B. the production of the primary commodities is increased by a greater proportion than the increase in their demand.
C. the government of the countries that export primary products subsidize the production of these primary products.
D. the exporters of the primary products form international cartels.
Answer: D
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Which of the following statements is TRUE about the difference between the public debt and the government budget deficit?
A) The public debt is a flow measure and the government budget deficit is not a flow measure. B) There is no relationship between the public debt and the government budget deficit since one is a stock measure and the other is a flow measure. C) The public debt always increases while the government budget deficit may increase or decrease. D) The public debt for this year will increase or decrease depending upon whether there is a government budget deficit or a government budget surplus.
The above table shows production points on Sweet-Tooth Land's production possibilities frontier. Which of the following statements is TRUE?
A) Producing 0 chocolate bars and 100 cans of cola is both attainable and efficient. B) Producing 20 chocolate bars and 80 cans of cola is attainable, but inefficient. C) Producing 30 chocolate bars and 38 cans of cola is only attainable with an increase in technology. D) Producing 40 chocolate bars and 0 cans of cola is unattainable and inefficient.
If the interest rate is 10 percent per year, and you have $100,000 now, which of the following is closest to what your $100,000 will be worth in one year?
A) $105,000 B) $110,000 C) $100,000 D) $102,000
Railroads have received significant attention from regulators because
A. railroads enjoy significant economies of scale. B. conditions in the railroad industry are conducive to destructive competition. C. regulators would like to ensure universal service to all potential railroad customers. D. railroads are vulnerable to predatory pricing.