The shifting of resources from inefficient to efficient companies as trade barriers fall produces static effects.
a. true
b. false
a. true
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An efficient way to get a tire manufacturer to produce the socially optimal output level is
A) to impose a tax to make the tire manufacturer bear the external cost it creates. B) for government to set a quota on the quantity of tires that it can produce. C) to grant a subsidy to enable the manufacturer to internalize the external costs of production. D) to assign property rights to the tire manufacturer.
If the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro, then
A) both the euro and dollar have appreciated. B) the euro has appreciated and the dollar has depreciated. C) the euro has depreciated and the dollar has appreciated. D) both the euro and dollar have depreciated.
There is a tendency for inflation rates to fall in countries that use inflation targeting
a. True b. False Indicate whether the statement is true or false
An economy growing at a steady rate of 3.1 percent per year doubles in size approximately every __________ years
A) 40 B) 23 C) 32 D) 16