Why do nations often impose trade barriers that make it difficult for their own citizens to trade with people in another country?
A) Trade restrictions improve the efficiency of resource use.
B) Trade restrictions are a good way for a country to increase the income levels of its citizens.
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) Trade restrictions often provide benefits to highly visible special interest groups while imposing a less visible cost on the general populace.
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You have obtained data on test scores and student-teacher ratios in region A and region B of your state. Region B, on average, has lower student-teacher ratios than region A. You decide to run the following regression
Yi = ?0+ ?1X1i + ?2X2i + ?3X3i+ui where X1 is the class size in region A, X2 is the difference between the class size between region A and B, and X3 is the class size in region B. Your regression package shows a message indicating that it cannot estimate the above equation. What is the problem here and how can it be fixed? Explain the problem in terms of the rank of the X matrix. What will be an ideal response?
Which of the following would shift the AS curve downward?
a. A decrease in the price level b. A decrease in world oil prices. c. An increase in world oil prices. d. A natural disaster that raises unit costs for all firms. e. A loss of technological capability.
In the short run, a decrease in government expenditure ________ real GDP and ________ the price level
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
How does the natural unemployment rate change and what factors might make it change?
What will be an ideal response?