If a government wanted to increase the prosperity of a nation, it could best serve this goal by
a. protecting domestic industries from international trade, thus encouraging domestic growth.
b. regulating the way in which firms can operate.
c. reducing barriers that restrict the ability of potential competitors to enter markets.
d. subsidizing firms that are in danger of going out of business.
C
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Because of the positive externality of vaccinations, economic efficiency would be improved
A) if more people were vaccinated. B) only if no people were vaccinated. C) only if all people were vaccinated. D) if fewer people were vaccinated.
Which of the following is the most likely cause of most recessions according to the new classical model?
a. a change in the money supply. b. an increase in taxation and government spending. c. a fall in expected profits. d. a rise in the price of oil. e. an unanticipated change in the money supply.
That Table 8.1 shows a short-run situation is evident from
A) the linear marginal revenue function. B) the constant price. C) the increasing marginal cost. D) the presence of positive costs at Q = 0. E) the absence of marginal values at Q = 0.
A free-trade area or zone promotes:
A. Free trade among all nations B. Free trade among member nations, but not necessarily with other nations C. Higher tariffs worldwide, to promote more national stability D. Higher tariffs among member nations to encourage more trade between members and non-members