Which of the following statements about a trade bloc is accurate?
A. The gains from a trade bloc are shared equally by each member.
B. A trade bloc may lower firms' costs by allowing them to exploit economies of scale.
C. Increased competition within a trade bloc can result in higher commodity prices in the domestic markets of the member countries.
D. A trade bloc can increase the opportunities for domestic business investments but usually repels foreign direct investments into the member countries.
Answer: B
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In the figure above, the Lorenz curve that shows the least inequality, but NOT perfect equality, is
A) curve A. B) curve B. C) curve C. D) curve D.
Which of the following is not true about wealth taxation?
a. Wealth taxation can be achieved through sales taxation. b. Wealth taxation may be a way of taxing a stock that generates a difficult to measure flow of services. c. Wealth taxation can be a method of taxing unrealized capital gains. d. Wealth taxation may be a method to discourage the accumulation of wealth.
The following is an example of adverse selection
a. A majority of those applying for well paid jobs are well qualified b. More reckless drivers opt for cars with fewer safety devices c. Individuals living in less secure neighborhoods want to buy less insurance d. Individuals with a strong family history of heart diseases opt to buy more insurance
If interest rates rise in the United States, what effect does this have on the value of the U.S. dollar?
What will be an ideal response?