Governments sometimes subsidize domestic industries. When this occurs
A. the subsidized industries have an advantage on international markets relative to non-subsidized firms. For this reason, other countries often impose tariffs on the subsidized imports.
B. the subsidized industries have an advantage on international markets relative to non-subsidized firms. However, this is not an argument for imposing tariffs and tariffs would violate international agreements.
C. the governments will not impose tariffs.
D. the subsidized sell less in international markets because it is more profitable to sell at home.
Answer: A
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Figure 11-1
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In Figure 11-1, to reach the level of potential GDP, the administration of President Obama would most likely advocate
A. increasing Social Security payments. B. decreasing defense spending. C. decreasing personal income taxes. D. All of the above are correct.
The short-run Phillips curve shows ________ between the unemployment rate and the inflation rate, and the long-run Phillips curve shows ________ between the unemployment rate and the inflation rate
A) a positive relationship; a negative relationship B) a negative relationship; a positive relationship C) no relationship; a negative relationship D) a negative relationship; no relationship E) no relationship; no relationship
The exchange rate changed from € 2.5/ $ to € 2.0/ $. Therefore:
a. The euro appreciated by 25% and the dollar depreciated by 25%. b. The euro depreciated by 25% and the dollar appreciated by 25%. c. The euro appreciated by 20% and the dollar depreciated by 25%. d. The euro appreciated by 25% and the dollar depreciated by 20%. e. The euro depreciated by 25% and the dollar appreciated by 20%.
Refer to the given table.Price Per UnitColumn A Units Per YearColumn B Units Per Year$4011040$459550$508060$556570$605080 Suppose the columns in this table reflect demand and supply. If the current market price is $50, then you would expect:
A. demand to decrease and supply to decrease. B. supply to decrease. C. the market price to fall. D. the market price to rise.