Measuring the impact of the protection on the U.S. economy and on Harley-Davidson:
a. is very clear—it was a success.
b. is very clear—it was a failure.
c. is not as black and white as the numbers might show, but saving a profitable company at a low cost has some merit for the U.S. economy.
d. should take into consideration that Harley-Davidson was a private firm with private stockholders. Most economists disagree with government efforts to save it from bankruptcy.
Answer: c. is not as black and white as the numbers might show, but saving a profitable company at a low cost has some merit for the U.S. economy.
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Assume the United States and Canada have the same amount of resources. In a given time period, the United States can produce 3 tons of steel or 300 tons of wheat. Canada can produce 4 tons of steel or 400 tons of wheat. This means that
A. The United States has a comparative advantage in steel. B. Canada has an absolute advantage in both steel and wheat. C. Canada has a comparative advantage in steel. D. The United States has an absolute advantage in steel.
Exhibit 1A-5 Straight line
In Exhibit 1A-5, as X increases along the horizontal axis, from point C to point D on the line, the Y values
A. increase so the relationship between X and Y is direct. B. decrease so the relationship between X and Y is inverse. C. remain unchanged so the relationship between X and Y is independent. D. change so the relationship between X and Y is variable.
Which of the following correctly describes a shortage? Question 4 options:
A. Some buyers are unable to buy as much as they want at the current price. B. The quantity demanded equals the quantity supplied but the price is less than the equilibrium price. C. The quantity demanded equals the quantity supplied but the price is higher than the equilibrium price. D. The quantity demanded is less than the quantity supplied. E. Some sellers are unable to sell all they want to at the current price.
In the Keynesian model, when the economy is not in long-run equilibrium, then the short-run equilibrium point is not on which curve?
A. LM B. FE C. IS D. SRAS