Which of the following statements is true?
A) Eliminating its tariffs and quotas unilaterally would not benefit the United States because this would remove the leverage it would have to persuade other countries to eliminate their trade restrictions.
B) Economic efficiency would be increased if the United States eliminated all of its trade restrictions, but only if all other countries eliminated their trade restrictions too.
C) The U. S. economy would gain from the elimination of its tariffs but not from the elimination of its quotas.
D) The U.S. economy would gain from the elimination of tariffs and quotas even if other countries do not reduce their tariffs and quotas.
D
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What is the nature of the trilemma that is encountered when choosing monetary arrangements?
A) Only two of the three aspects of internal and external balance can be accommodated simultaneously. B) Only three of the four aspects of internal and external balance can be accommodated simultaneously. C) Only one of the three aspects of internal and external balance can be accommodated simultaneously. D) Only two of the four aspects of internal and external balance can be accommodated simultaneously. E) Only one of the four aspects of internal and external balance can be accommodated simultaneously.
Economic models do all of the following except
A) simplify some aspect of economic life. B) answer economic questions. C) make economic ideas explicit and concrete for use by decision makers. D) portray reality in all its minute details.
Marginal and average taxes are
A. calculated using the same methodology. B. not used in modern tax analysis. C. not calculated using the same methodology. D. all of these answer options are correct.
Using typical estimates of the sacrifice ratio, how much output would likely be sacrificed to reduce inflation from 4 percent to 2 percent?