Increased trade restrictions
A. Reduce total consumption possibilities.
B. Alter a nation's production possibilities.
C. Have a neutral impact since the losses cancel out the benefits.
D. Increase a trade deficit in the short run.
Answer: A
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Refer to the table above. If the world price of trousers is $5 per pair, then which of the following statements is true?
A) All the four countries will import trousers. B) All the four countries will export trousers. C) Country A and Country D will export trousers, whereas Country B and Country C will import trousers. D) Country B and Country C will export trousers, whereas Country A and Country D will import trousers.
If skilled and unskilled labor are substitutes, then an increased minimum wage would tend to
A) reduce the demand for both unskilled and skilled workers. B) reduce the quantity demanded of unskilled workers and increase the demand for skilled workers. C) reduce the demand for unskilled workers and increase the quantity demanded of unskilled workers. D) reduce the quantity demanded for both unskilled and skilled workers.
The unemployment rate for the economy as a whole is a(n)
a. normative value judgment b. positive value judgment c. microeconomic statistic d. macroeconomic statistic e. example of an economic model
Which of the following is not true of Usury laws that set maximum interest rates?
A. They are designed to protect the consumer. B. They interfere with the market allocation process. C. They have an effect only if the market rate is higher than the legal maximum. D. They are analogous to a price floor.