Which of the following would impose the greatest costs to society?
a. high levels of expected inflation
b. low levels of expected inflation
c. variable rates of inflation
d. stable rates of inflation
c
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Historically, why did the import-substitution strategy become popular among developing nations?
What will be an ideal response?
The U.S. economy is not a perfectly competitive market. There are costs associated with negotiating contracts, enforcing agreements, taxes and less than perfectly competitive firms. Nevertheless, according to Wallis and North (1986), the U.S
economy has grown in the presence of these transaction costs and these costs have risen sharply as a percentage of GDP between 1890 and 1970. Indicate whether the statement is true or false
The Congressional Budget Office, which is staffed by economists, provides Congress with independent evaluations of policy proposals
a. True b. False Indicate whether the statement is true or false
How would a decline in demand for imported commodities by the Chinese affect the market for cargo transportation to China?
A. Supply of cargo transportation shifts to the right causing an increase in demand and equilibrium quantity and a decrease in equilibrium price. B. Supply of cargo transportation shifts to the right causing an increase in quantity demanded and decline in equilibrium price. C. Demand for cargo transportation shifts to the left causing a decline in supply and equilibrium quantity and price. D. Demand for cargo transportation shifts to the left causing a decline in quantity supplied and price.