During the Great Depression, many industrial countries tried protecting domestic jobs by raising tariffs. Economic theory would suggest that the result would be
A. increased incomes in the countries that pursued this policy.
B. success for only the countries that raised tariffs first.
C. success for firms that had a comparative advantage in manufactured goods rather than agricultural goods.
D. reduced exports and volume of trade for everyone.
Answer: D
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Because a monopsony must raise the wage on all labor hired in order to hire more labor,
A) the MCL curve is horizontal at the market wage. B) the MCL curve is negatively sloped. C) MCL = W. D) MCL > W.
Imperfect information can be an entry barrier
Indicate whether the statement is true or false
Assume the table has recorded the total output and prices of the only two goods produced. Looking at the figures in the table and using them to construct the GDP deflator, we can note the GDP deflator in 2003 was:
A. 135
B. 74
C. 109
D. 105
The basic difference between macroeconomics and microeconomics is:
What will be an ideal response?