What is the "beggar-thy-neighbor" policy, and why is it a problem for the country that caused it?
What will be an ideal response?
The 'beggar-thy-neighbor' phenomenon is the act of transferring unemployment problems to other countries by instituting tariffs on imports. The problem is that the resultant loss of business in other countries leaves them less able to purchase the exports of the country that initiated the policy.
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If demand is inelastic and the price falls, the total revenue
A) rises. B) falls. C) remains constant. D) might rise, fall, or remain constant. E) becomes negative.
In which of the following cases does the tragedy of the commons occur? I. Cattle grazing on private ranches. II. Catching lobsters off the coast of Florida. III. Raising salmon on salmon farms. IV. Using legal services provided by the courts
A) I only B) II only C) II and III only D) I and IV only
Money is
a. only assets such as gold and silver b. only fiat in nature c. anything that is generally accepted as a means of payment d. acceptable as a means of payment because the government guarantees that it must be e. only those things backed by gold
If borrowers and lenders expect a higher rate of inflation, what happens to interest rates?
What will be an ideal response?