If a country is concerned about protecting a particular industry for national security reasons, which of the following policies is most effective from an economic standpoint?
A. Voluntary export restraints on countries exporting goods to the United States
B. Import licensing
C. Targeted government subsidies
D. Protectionist tariffs
Answer: C
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The legislation overturning the Glass-Steagall Act is
A) the McFadden Act. B) the Gramm-Leach-Bliley Act. C) the Garn-St. Germain Act D) the Riegle-Neal Act.
Expansionary policy only leads to inflation, but does not raise output in ________
A) traditional Keynesian theory B) new Keynesian theory C) real business cycle theory D) traditional Keynesian, new Keynesian and real business cycle theory
The following expressions describe a perfectly competitive labor market. The labor supply curve is:
SL = AE = $3.00 + $0.000375L. The marginal revenue product of labor curve is: MRPL = $13.00 - 0.000433L. a. Find the equilibrium wage in this labor market. Also, find the optimal number of labor hours worked per week. Let L represent the number of labor hours worked per week, and let W represent the hourly wage of workers. b. Determine the economic rent earned by labor in this situation.
TANF provides benefits that raise recipients to the poverty line
Indicate whether the statement is true or false