When one more car enters a crowded highway it increases the travel times of all other drivers on the highway creating a negative externality
a. True
b. False
Indicate whether the statement is true or false
True
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The use of discretionary fiscal policy is hampered by
i. difficulty of estimating the level of potential GDP. ii. lack of accuracy of economic forecasts. iii. the small impact tax cuts and increases in government expenditure have on aggregate demand. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
According to the principle of comparative advantage, total output and consumption levels will be highest when goods are produced in nations according to which of the following conditions?
a. Opportunity costs are lowest. b. Absolute advantages are highest. c. Opportunity costs are equal. d. Absolute advantages are lowest.
The euro began trading in January 1999
a. True b. False Indicate whether the statement is true or false
With respect to environmental issues, the GATT:
a. does not allow countries to adopt environmental laws that affect imports. b. allows countries to adopt environmental laws that affect domestic production but not imports. c. allows countries to adopt environmental laws that are applied uniformly against domestic producers and imports. d. allows countries to adopt more stringent laws affecting imports than domestic producers.