An import quota will ordinarily raise the price of the good in the importing country.
Answer the following statement true (T) or false (F)
True
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From the data given in Table 3-2, the opportunity cost of increased cotton in moving from A to B is
A. 16 units of corn. B. 31 units of corn. C. 15 units of corn. D. 4 units of corn. E. 1 unit of corn.
In the long run, a higher government deficit does not affect equilibrium real Gross Domestic Product (GDP), so that continuous increases in the government deficit will
A) lead to greater tax revenues. B) reduce spending on privately provided goods and services. C) reduce the price level. D) increase the unemployment rate.
Price floors in agriculture lead to
A) efficient farming techniques being employed. B) surpluses of supported farm products. C) more competition in farming. D) the most efficient market solution.
Haiti has a lower literacy rate (the percentage of those over 15 who can read and write) compared to other Latin American and Caribbean countries. Where does this low literacy rate fit into the factors that explain the wealth of nations?
A. It indicates that Haiti is short on human capital. B. It shows that it lacks entrepreneurship. C. It shows a lack of natural resources. D. It indicates that Haiti is short of physical capital.