The fact that trade policy often imposes harm on large numbers of people, and benefits only a few may be explained by
A) the lack of political involvement of the public.
B) the power of advertisement.
C) the problem of collective action.
D) the basic impossibility of the democratic system to reach a fair solution.
E) a cycle of political corruption.
C
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A benefit-based standard is one that
a. considers the benefits balanced with the costs of that standard b. maximizes the marginal external benefit (MEB) of the standard c. is set to the point at which MEB is zero d. none of the above
An economy has two workers, Paula and Ricardo. Everyday they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the most of each good that can be produced each day if each worker fully specializes according to his/her comparative advantage?
A. 8 computers and 22 shirts B. 5 computers and 14 shirts C. 4 computers and 12 shirts. D. 6 computers and 16 shirts
Which of the following statements best describes one of the schools of thought regarding the “new economy” controversy?
a. Increased military spending post-9/11 has contributed to the growth in U.S. productivity. b. Extraordinary advances in communications and information technology have contributed to the growth in U.S. productivity. c. The increase in immigration has contributed to the growth in U.S. productivity. d. The aging U.S. population has contributed to the growth in U.S. productivity.
A government subsidy is typically used
A) to correct a negative externality. B) to provide a government-inhibited good. C) to reduce inflation. D) to correct a positive externality.