Governments sometimes subsidize domestic industries. When this occurs
A) the governments will not impose tariffs.
B) the subsidized sell less in international markets because it is more profitable to sell at home.
C) the subsidized industries have an advantage on international markets relative to non-subsidized firms. For this reason, other countries often impose tariffs on the subsidized imports.
D) the subsidized industries have an advantage on international markets relative to nonsubsidized firms. However, this is not an argument for imposing tariffs and tariffs would violate international agreements.
C
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Everything else held constant, a decrease in the required reserve ratio on checkable deposits will mean
A) a decrease in the money supply. B) an increase in the money supply. C) a decrease in checkable deposits. D) an increase in discount loans.
What is the difference between nominal and real GDP?
a. Nominal GDP is adjusted for changes in the price level; real GDP is not. b. Real GDP is adjusted for taxes and transfer payments; nominal GDP is not. c. Real GDP is adjusted for changes in the price level; nominal GDP is not. d. Nominal GDP is adjusted for depreciation; real GDP is not. e. Real GDP is adjusted for depreciation; nominal GDP is not.
Common resources are overused because:
a) the marginal private benefit will always exceed the marginal social cost b) the marginal social benefit is not taken into consideration by producers c) social costs are controlled by quotas d) the social costs outweigh the private costs
Which of the following has made the greatest contribution to advances in productivity in recent years?
A. Spending on research and development. B. Improvement in management. C. Improvements in the quality of labor. D. Increases in capital per worker.