The two primary reasons to adopt measures to restrict trade are that
a. they help keep real wages high in the importing country, and they also permit small businesses to compete in international markets.
b. they may help the importing country improve its educational system, and they keep high-technology products from being stolen by foreign competitors.
c. they may help the importing country get better prices for its goods, and they protect certain industries from foreign competition.
d. they may help advance the political goals of the nation, and they encourage productivity in domestic industries.
c
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With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?
a. passage of legislation reducing the workweek to 30 hours. b. instituting a tax policy encouraging consumption at the expense of investment. c. instituting a tax policy encouraging investment at the expense of consumption. d. an increase in the marginal income tax rate, which would reduce the work effort of individuals.
Which of the following assets is least liquid?
A. Art B. Checking account deposits. C. Common stock D. Houses
In 2010, dissenters were worried that the effects of policies to reduce unemployment would create the conditions for
A. higher long-term inflation. B. a more horizontal Phillips curve. C. higher long-term unemployment. D. larger budget surpluses and, thus, higher interest rates.
Frederic Bastiat's satire clearly illustrates that:
A. French candle makers would benefit from government restrictions on trade B. French consumers would benefit from a tariff on U.S. candles C. The arguments in favor of trade protectionism can sometimes be ridiculous D. The arguments in favor of protectionism are sometimes well-founded