If in the long run, any government policy that increases exports
A) also increases imports.
B) decreases imports.
C) has no impact on imports.
D) makes imports become negative.
Answer: A
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Those who say that economics is becoming an increasingly imperialist social science are suggesting that economics is
A) becoming increasingly concerned with corporations rather than small businesses. B) becoming increasingly focused on government actions rather than on business activity. C) spreading out into other fields of study, such as history, anthropology, and sociology. D) becoming increasingly focused on business activity rather than on government actions.
If a country allows trade and, for a certain good, the domestic price without trade is higher than the world price, which of the following conclusions can be made?
What will be an ideal response?
An optimum currency union refers to the decision by a country to:
A) join a monetary union that best serves its self-interest. B) join a free trade area. C) dollarize its economy. D) eliminate tariffs.
Scarcity in economics means:
A) not having sufficient resources to produce all the goods and services we want. B) the wants of people are limited. C) there must be poor people in rich countries. D) economists are clearly not doing their jobs.