A policy in which a country restricts the importation of goods and services produced in foreign countries is described by economists as:
A) two-way trade.
B) protectionism.
C) efficient.
D) one-way trade.
Ans: B) protectionism.
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Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
If before Tracy chose, Amy could make a credible commitment to choose either the top or bottom branch when her turn came, then we would expect Tracy to get a payoff of ________ and Amy to get a payoff of ________.
A. 75; 150 B. 125; 125 C. 300; 200 D. 25; 225
Using the above figure, which of the following is CORRECT?
A) 1 guilder will sell for $2. B) 1 dollar will sell for 1/2 guilder. C) A shortage of guilders exists at an exchange rate above $0.60. D) A surplus of guilders exists at an exchange rate above $0.60.
If the interest rate is below the equilibrium, which of the following occurs in this market?
a. excess supply b. excess quantity supplied c. excess demand d. excess quantity demanded
What are the three basic conditions necessary for price discrimination?