In what sense is tariff escalation protectionist? What alternatives exist for remedying this problem?
What will be an ideal response?
Tariff escalation is protectionist in that developed countries impose higher tariffs on products most often produced by developing countries. This could be offset by preferences accorded to developing-country trade, but the more efficient approach would be to reduce those higher tariffs.
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If a firm's average total cost is less than price where MR = MC
A) the firm should shut down. B) the firm should cut back on its output to lower its cost. C) the firm should continue to produce the output it is producing. D) the firm should raise its price.
Preservation of national security is one argument in favor of trade restrictions.
Answer the following statement true (T) or false (F)
Money is
A. the value of all coins and currency in circulation at any time. B. anything that is generally accepted as a medium of exchange. C. the same as income. D. backed by gold in Fort Knox.
When the Fed lowered short-term interest rates to near zero but the policy didn't seem to stimulate the economy enough, the Fed in 2009 also began conducting the policy of expansive buying of bonds now known as:
A. ZIRP (zero interest rate policy) B. QE (quantitative easing) C. Operation Twist D. Zero Lower Bound