Which of the following countries have safety nets that offer better retirement benefits and more job security than does the U.S. safety net?
A. Canada and Mexico
B. Japan and Brazil
C. France and Germany
D. China and India
Answer: C
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Two farmers, A and B, each apply 100 tons of manure on their fields. To reduce manure runoff, the government has decided to require a permit for each ton of manure applied. The government gives each farmer 50 permits. Farmer A incurs losses of $25 for each ton of manure he does not apply, and Farmer B incurs losses of $50 for each ton of manure he does not apply. What is the total cost of
reducing runoff if firms are not allowed to buy and sell permits from each other? What is the total cost of reducing runoff if the firms are allowed to buy and sell permits from each other? a. $3,750; $2,500 b. $2,500; $3,750 c. $5,000 . $2,500 d. $3,750; $3,750
What is the relationship between real and nominal interest rates?
a. They are both different names for the same thing. b. The real interest rate is the rate stated on a loan. c. Real interest rate is calculated by subtracting inflation from nominal interest rate. d. Nominal interest rate is calculated by subtracting inflation from real interest rate.
A stronger dollar would be a good policy if the U.S. government wanted to:
A. increase U.S. imports and expand the U.S. economy. B. reduce U.S. imports and slow the U.S. economy. C. reduce U.S. exports and slow the U.S. economy. D. increase U.S. exports and expand the U.S. economy.
As long as neither supply nor demand is perfectly elastic, both suppliers and demanders will pay part of any tax.
a. true b. false