All of the following would be potential problems if developing nations around the world emphasized export promotion EXCEPT
A) industrial nations may be unable to absorb the exports of many newly industrializing nations.
B) it would be much harder to emphasize exports under the WTO framework if the emphasis in exports requires some kind of subsidies.
C) export growth may not add to GDP if it crowds out growth in output of goods for domestic consumption.
D) current research has clearly established that there is no causal connection between exports and faster economic growth.
D
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Natural barriers to entry arise when, over the relevant range of output, there
A) are diseconomies of scale. B) are constant returns to scale. C) are several firms who produce at the lowest average cost. D) are economies of scale. E) is one firm that owns a key natural resource.
A situation in which the government cannot implement an optimal tax policy because the policy is inconsistent with the government's incentives over time is known
A. government tax problem. B. time inconsistency of optimal policy. C. the double-counting game. D. Wagner's Law.
In the eighteenth century, the rise of manufacturing in New England helped the region attract more settlers than the other regions of the English colonies
Indicate whether the statement is true or false
According to the graph shown, if the supply increases, then
A. consumer surplus would increase.
B. consumer surplus would decrease.
C. total surplus would increase.
D. quantity would increase.