Country X subsidizes industry A. A worldwide recession has hit and Country X has decided to export Good A worldwide, selling the product for less than it costs to produce it. This is
A) the infant industry argument.
B) comparative advantage argument.
C) dumping.
D) a regional trade bloc.
Answer: C
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Suppose the economy is at full employment and firms become more pessimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) The aggregate demand curve will shift to the right. B) Prices will rise. C) Output will rise. D) Unemployment will rise.
Which of the following would decrease the current account balance of the United States?
A) a decrease in the amount of money the U.S. government sends in foreign aid to other countries B) a decrease in imports C) a decrease in the amount of income U.S. companies pay out to foreigners who own investments in the U.S. D) a decrease in the balance of trade
The above figure shows the isoquants for producing steel. When producing between 10,000 and 20,000 tons there are
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) economies of scale.
Which of the following groups has the lowest malnutrition rate among children less than 5 years of age?
a. middle-income economies b. low-income economies c. high-income economies d. sub-Saharan African economies e. all the world's economies