Free trade is ________, because it ________ the size of the pie available to the economy.
A. inefficient; decreases
B. efficient; increases
C. inefficient; increases
D. efficient; decreases
Answer: B
You might also like to view...
The effort curve is
A) horizontal, because work effort is independent of the real wage. B) negatively sloped, because of diminishing marginal returns to labor. C) positively sloped, because of the law of increasing cost. D) S-shaped, because a small increase in the real wage will increase work effort more at an intermediate wage than at a low wage or at a high wage.
Safe Bank has an outside display which has the time and temperature that is always correct. This is an example of
A) an interference in the workings of the price system. B) a breakdown in communication between the bank and its customers. C) a negative externality. D) a positive externality.
Suppose a family has saved enough for a 10 day vacation (the only one they will be able to take for 10 years) and has a utility function U = V1/2 (where V is the number of healthy vacation days they experience). Suppose they are not a particularly healthy family and the probability that someone will have a vacation-ruining illness (V = 0) is 20%. What is the expected value of V?
a. 10 b. 8 c. 2 d. 0
The Gramm-Leach-Bliley Act (GLBA), passed by the U.S. Congress in the year 1999, allows commercial banks to:
a. operate in all foreign countries. b. open new branches in Cuba. c. expand their business into other areas of finance, including insurance and selling securities. d. raise reserve requirements for other financial institutions. e. eliminate unit banking.