One In the News article titled "Everything Is on Sale and That's Not Good" suggests that deflation
A. Harms economic growth due to lower profits, more layoffs, and less spending that create a self-reinforcing cycle.
B. Harms the economy because bankruptcies decrease.
C. Results in higher interest rates that further slow the economy.
D. Harms sellers only, but not buyers since they get better deals without worries of job losses.
Answer: A
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When an import quota is imposed on tomatoes, the price of tomatoes ________ and the quantity bought ________, so domestic consumers ________
A) rises; increases; lose B) rises; decreases; lose C) falls; decreases; lose D) falls; increases; lose E) rises; decreases; gain
Economists consider the effects of free trade on income distribution to be ________ important than the effects on overall welfare because ________
A) less; those who are harmed can be compensated by those who gain B) more; those who are harmed are not compensated by those who gain C) less; the effects on income distribution are minor and inconsequential D) more; the effects on income distribution are major and consequential E) less; the wealthy benefit and only the poor lose
Empirical evidence suggests that the federal budget has remained more or less in surplus between 1990 and 2002
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of trade policy at the regional level?
a. Congress passing legislation to prevent dumping. b. The European Union adopting a common currency c. The World Trade Organization holding a round of negotiations in France. d. The General Agreement on Tariffs and Trade being made.