If the United States threatens to impose a tariff on Honduran blueberries if Honduras does not remove agricultural subsidies, the United States will be
a. better off no matter how Honduras responds.
b. better off if Honduras gives in, and will be no worse off if it doesn't.
c. worse off if Honduras doesn't give in to the threat.
d. worse off no matter how Honduras responds.
c
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Creative destruction refers to
A. the destruction of the government system which limits economic growth. B. the movement from an agricultural society to a service economy. C. the creation of new jobs and economic growth after destroying old jobs. D. the mechanism for establishing property rights.
Tax cuts tend to boost
A. disposable income. B. tax revenues. C. interest rates. D. inflation.
If the demand for hamburgers increases, it is likely that the demand for fast-food employees will
A. increase. B. decrease. C. increase at first but then fall rapidly. D. stay the same.
The marginal benefit of pollution abatement
A. decreases as pollution abatement increases because of the law of diminishing marginal utility. B. increases at an increasing rate as abatement increases. C. increases as pollution abatement increases because of the law of increasing marginal returns. D. is constant as pollution abatement increases.