Which of the following describes the effect on the domestic market of tariffs imposed on imported wool blankets?
a. Fewer wool blankets will be sold overall.
b. Prices for domestic wool blankets will fall.
c. Sales will fall for domestic wool producers.
d. Imported wool blanket sales will increase.
a. Fewer wool blankets will be sold overall.
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The negative impact of the loss of value of collateralized assets is due to
A) asymmetric information. B) Ricardian Equivalence. C) limited commitment. D) financial intermediation through banks.
The reason that differences in economic growth rates are important in the long run is that
A) growth compounds over time. B) population naturally shrinks in most countries. C) real GDP usually drops when adjusted for inflation. D) nominal GDP typically increases faster than real GDP.
The demand curve faced by a perfectly competitive firm
a. is the market demand curve b. slopes downward c. is perfectly elastic d. is vertical e. rises when market supply rises
If a nation is currently operating at a point inside its production possibilities curve, it
A. is fully employing all of its resources. B. is operating beyond its possible capacity. C. is utilizing its resources efficiently. D. none of the choices are true.