A beggar-thy-neighbor policy is
A. The imposition of trade barriers for the purpose of expanding exports.
B. The imposition of trade barriers to increase domestic employment.
C. The imposition of import barriers for the purpose of curbing inflation.
D. An attempt by a poor country to get more foreign aid and assistance.
Answer: B
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The primary reason why a monopoly can make a long-run economic profit is the existence of
A) barriers to entry. B) inelastic demand. C) price discrimination. D) many buyers.
The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What is the tuition that will make the number of students equal to the efficient number?
A) $400 B) $800 C) $2,800 D) $3,200
A key reason that firms and financial institutions might participate in an interest rate swap is
A) to transfer interest rate risk to parties that are more willing to bear it. B) the low information costs of swaps compared with other derivative contracts. C) the greater liquidity of swaps compared with other derivative contracts. D) the favorable tax implications of swaps compared with other derivative contracts.
An increase in government spending that is not financed by an increase in taxes will cause which of the following?
A) an increase in interest rates and an increase in planned investment B) an increase in interest rates and a reduction in planned investment C) a reduction in interest rates and an increase in planned investment D) a reduction in interest rates and a reduction in planned investment