Why do nations impose trade barriers, such as those instituted during the Great Depression, that make it difficult for their own citizens to trade with people in other countries?
a. Trade restrictions are a good way for a country to increase the total employment and income level of its citizens.
b. As the experience during the 1930s illustrates, trade restrictions are an effective way to increase exports and tax revenues.
c. Trade restrictions provide gains to domestic residents at the expense of foreigners.
d. Trade restrictions often provide benefits to highly visible special interest groups while imposing a less visible cost on the general populace.
D
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By the theory of intertemporal substitution of labor, a higher current real interest rate ________ the amount of labor ________ at each real wage rate in the current period
A) raises, demanded B) raises, supplied C) lowers, demanded D) lowers, supplied
Increases in the availability of natural resources will affect the aggregate supply curve such that it
A. shifts inward and becomes flatter. B. shifts inward. C. shifts outward. D. becomes flatter. E. becomes steeper.
Which of the following is not one of the four factors that affects the intensity of competition in Porter's Five Forces Model:
A. Intensity of competition B. The bargaining power of buyers C. The bargaining power of suppliers D. The threat of new entrants
Gross investment minus depreciation is equal to:
A. gross domestic product. B. net investment. C. personal investment. D. nominal investment.