From a consumer's viewpoint, which of the following policies would be least desirable?
A. Free trade.
B. Quotas on imported goods.
C. No trade.
D. Tariffs on imported goods.
Answer: C
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The various studies of the size of the fiscal multiplier by different economists suggest
A) general agreement that the fiscal multiplier value is relatively high. B) general agreement that the fiscal multiplier value has a range between 0.8 and 1.2. C) general agreement that the fiscal multiplier value is zero. D) there is a wide range of opinion on the size of the fiscal multiplier.
The values on the axes of the long-run aggregate supply diagram are
A. real GDP and nominal GDP. B. real GDP per year and the price level. C. real GDP and interest rates. D. nominal GDP and the price level.
Use the following table to answer the question below. Jorge's Production Possibilities SchedulePounds of Green BeansPounds of Corn03202024040160608080 0 Jorge's opportunity cost of producing 1 pound of corn is ________ pound(s) of green beans.
A. 1/4 B. 4 C. 2 D. 1
Consider a competitive market in which people consume at the point where their marginal rates of substitution between products X and Y are 3/5
In this same market, producers produce where their marginal rates of transformation between X and Y are also 3/5. However, producers are producing 7 of Y and 3 of X, and consumers wish to consume 5 of Y and 5 of X per unit of time. Explain how this situation can exist. Also determine if it represents an equilibrium or not. If not an equilibrium, what will tend to happen in the market?