A good that has social costs that are less than private costs has a quantity that is
A) too high.
B) too low.
C) just right.
D) equal to zero.
B
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Trade restrictions tend to make domestic products
A) cheaper because they do not have to compete with foreign goods. B) cheaper because they do have to compete with foreign goods. C) more expensive because they have to compete with foreign goods. D) more expensive because they do not have to compete with foreign goods.
Globalization is becoming more of a worldwide phenomenon because
a. more countries want to become self-sufficient. b. less-developed countries are increasing their trade restrictions. c. technological advancements are decreasing transportation costs. d. trade hurts workers in poor countries.
Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1 per frame levied on picture frames will increase the price paid by buyers of picture frames by
a. less than $0.50. b. $0.50. c. between $0.50 and $1. d. $1.
Why does a downward-sloping Phillips curve imply a positive sacrifice ratio?