________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries
A) Trade creation
B) Trade diversion
C) Trade exclusion
D) Trade distortion
B
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If two consumption points are not on the same indifference curve, then one point is ________
A) a substitute for the other point B) unaffordable and the other is affordable C) preferred to the other D) more expensive than the other
Explain why it may make sense for the United States, Japan, and Europe to allow their mutual exchange rate to float?
What will be an ideal response?
What to produce, how to produce, and for who to produce are the three fundamental economic questions
a. True b. False Indicate whether the statement is true or false
Which of the following is a way in which a government could encourage spending on research and development?
a. Increase the tax rate on capital gains b. Enhance patent protection c. Decrease funding to universities d. Increase the tax on corporate profits e. Increase the budget deficit