Which of the following statements is correct? Most economists
A. think that protectionism is a vital and necessary component in a nation's economic policy.
B. prefer to let the market forces of supply and demand solve trade imbalances.
C. believe that tariffs and quotas are efficient and effective measures.
D. believe product standards, export subsidies, and exchange controls are desirable trade practices, but quotas and tariffs only provoke retaliation.
B. prefer to let the market forces of supply and demand solve trade imbalances.
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The size of the effect of a given deposit of cash into a demand deposit account on the money supply is smaller:
a. the greater the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves. b. the greater the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves. c. the smaller the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves. d. the smaller the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.
Your upstairs neighbor has the right to practice his clog dancing at night. But you find the best time to study is at night, and the noise from the clog dancing makes it hard for you to concentrate. You tell your neighbor that you will wash his car every week if he does not practice his clog dancing at night and he agrees to this. This is an example of the
A. fallacy of composition. B. Coase theorem. C. free-rider problem. D. drop-in-the-bucket problem.
When external costs are present and government imposes a tax equal to the external marginal cost, then efficiency can be achieved
Indicate whether the statement is true or false
Discuss why the discount rate may be considered a penalty rate of interest charged to banks.
What will be an ideal response?