The U.S. government has two different methods to deal with illegal drug use. First, the government has tried a "war on drugs", with the idea of keeping illegal drugs out of the country
Second, the "Just say no" campaign has been used to make individuals more aware of the harmful effects of drugs. Use supply and demand to analyze the effects of these two separate policies.
The "war on drugs" leads to a reduced supply of drugs. The decrease in supply pushes the equilibrium price up and the equilibrium quantity down. The "Just say no" campaign is designed to reduce the demand for drugs. This will lower both the equilibrium price and quantity.
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Labor standards in trade are typically opposed by most developing countries who believe that they will be used
A) to further neo-imperialist colonial exploitation. B) to charge these countries with crimes against child-labor standards at the Hague. C) as a protectionist tool by import-competing producers in industrial countries. D) as a means of spreading U.S. Corporate Values and destroying local cultures. E) to hinder investment in foreign-based multinational corporations.
Discuss the effects of a rise in the interest rate paid by euro deposits on the exchange rate
What will be an ideal response?
M2 is equal to M1 plus:
a. savings deposits, money market deposit accounts, small time deposits, and eurodollars. b. savings deposits, money market deposit accounts, money market mutual funds, and eurodollars. c. small time deposits, money market deposit accounts, money market mutual funds, and eurodollars. d. savings deposits and small time deposits of less than $100,000. e. money market mutual funds, money market deposit accounts, savings deposits, large time deposits, and repurchase agreements.
The fundamental force driving international trade is comparative _______
A. advantage: a country exports those goods that have high prices B. abundance: the country that produces more than it needs exports the good C. advantage: the country with the lower opportunity cost of production exports the good D. cost: a country trades with other countries that produce cheaper goods