The basic concept behind strategic trade policy is that free trade is the best policy to pursue, but some countries don’t play by those rules. Therefore,
A. it makes no sense to engage in trade at all, and it makes sense to be self-sufficient.
B. it makes sense to restrict imports of items that are of military significance in order to maintain a strong defense posture.
C. it makes sense to threaten to protect markets unless other nations agree to open theirs.
D. it makes no sense to export items of strategic importance to other nations, because they should make them on their own.
Answer: C
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Each of the following would decrease the demand for U.S. dollars, shifting the demand curve for dollars to the left, except:
A. a decrease in real GDP abroad. B. a decreased preference for U.S.-made goods. C. a decrease in the real interest rate on U.S. assets. D. a depreciation of foreign currencies relative to the U.S. dollar.
In the above figure, the equilibrium price of a paperback book is $6 per book and the equilibrium quantity is 3 million books. The National Literature Board convinces the government to impose a price ceiling of $3 per book
At this price, the quantity of books supplied to the market will be A) 3 million a month and will equal the quantity demanded. B) less than 3 million a month and will exceed the quantity demanded. C) less than 3 million a month and will be less than the quantity demanded. D) more than 3 million a month and will exceed the quantity demanded.
The 10-year protection period from generic competition for drug manufacturers is a form of
A) trademark. B) hallmark. C) patent. D) copyright.
What are the three monetary policy tools of the Fed? Briefly describe how each tool can be used to implement an expansionary monetary policy and a contractionary monetary policy
What will be an ideal response?