When a large nation imposes a tariff, which of the following is NOT a cost incurred?
a. deadweight efficiency loss
b. reduced consumer surplus
c. deterioration of terms of trade for the trading partners
d. falling government revenues for the nation imposing the tariff
Ans: d. falling government revenues for the nation imposing the tariff
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Refer to the figure below. If the Federal Reserve wants to set the nominal interest rate at 9%, it must conduct open market ________ to set the money supply at ________. 
A. sales; 100 B. purchases; 900 C. purchases; 100 D. sales; 900
Which of the following observations is true?
A. The cost disease is most prevalent in low income countries. B. The cost disease affects public goods but not private goods. C. The cost disease is most prevalent in commodity markets. D. The cost disease occurs as the opportunity cost of labor increases.
Which one of the following persons would be classified as unemployed by the Bureau of Labor Statistics?
What will be an ideal response?
In a sequential game, the first mover into a new market:
A. always earns a greater payoff than the second mover. B. may discourage the second mover from entering that market. C. only enters when there is a dominant strategy. D. guarantees that a Nash equilibrium will result.