To assist pineapple growers in Hawaii, the U.S. government decides to limit the number of pineapples allowed into the country that are grown in Central American countries
Such a restriction prevents many transactions from occurring, and results in opportunity loss which is called a(n) A) import deficit.
B) deadweight loss of a quota.
C) rent seeking loss.
D) non-cooperative surplus.
B
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A bond is
A. a claim on the assets of the corporation that gives the purchaser an ownership right in the corporation. B. the share of profits distributed to bondholders. C. a promise to pay for the use of someone else's money. D. a promise of ownership of the government. E. c and d
The $50 billion emergency loan orchestrated by the U.S. Treasury and the IMF to Mexico in 1994
A) was a disastrous policy for Mexico. B) avoided a disaster to the Mexican economy. C) did not affect Mexico in the short run. D) did not affect Mexico in the long run. E) was ineffective both in the short and long runs.
If the economy is experiencing an inflationary gap and the government wants to accelerate the adjustment to the long-run equilibrium, it should
A) reduce aggregate demand by cutting government spending or raising taxes. B) reduce aggregate demand by increasing government spending or cutting taxes. C) increase aggregate supply by cutting government spending or raising taxes. D) increase aggregate supply by increasing government spending or lowering taxes.
Assume for Guatemala that the domestic price of coffee without international trade is higher than the world price of coffee. This suggests that
a. Guatemala has a comparative advantage over other countries in the production of coffee, and Guatemala will export coffee. b. Guatemala has a comparative advantage over other countries in the production of coffee, and Guatemala will import coffee. c. other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will export coffee. d. other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee.