According to international trade theory, a country can gain
a. if it protects domestic industries from low-wage foreign producers.
b. only if the trade harms its trading partners.
c. by importing goods when they can be obtained more economically from foreign producers.
d. if it maximizes the employment in domestic industries that face competition from foreign producers who have lower costs.
C
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The Troubled Asset Relief Program (or TARP) was introduced in order to:
A. reduce asset prices. B. reduce the government budget deficit. C. generate additional tax revenue. D. prevent the collapse of large financial institutions.
In the late 1960s, the Friedman-Phelps "natural rate hypothesis" predicted from the microeconomic structure of the labor market that the long-run Phillips Curve is ________, while macroeconomic events caused a very ________ acceptance of this ch
in aggregate supply theory. A) horizontal, rapid B) horizontal, gradual C) vertical, rapid D) vertical, gradual
Both the Federal Reserve System in the United States and the European Central Bank are comprised of geographically dispersed Banks. How might such decentralization contribute to successful monetary policy?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1) Vertical integration can increase and decrease a firm's costs. 2) If all stages of production occur within a vertically integrated firm, the firm has no taxable transactions during production. 3) Costs incurred in imposing compliance with a contract between an upstream firm and a downstream firm are considered to be monitoring costs. 4) If an upstream firm and a downstream firm have a long-term contract regarding the price of an input, a change in the market price of the input can result in either the upstream or downstream firm to incur an opportunity cost. 5) If the vertical integration between two firms creates greater managerial diseconomies than cost savings, the merger will increase the combined firm's overall costs.