Fiscal policy is typically:
A. extremely flexible provided policy lags are short.
B. extremely flexible because most government spending is discretionary.
C. difficult to implement quickly.
D. flexible despite the presence of implementation problems.
Answer: C
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Which of the following is NOT a reason Mexico and Canada wanted a free trade agreement with the United States?
A) Mexico wanted increased direct foreign investment. B) Canada wanted to guarantee access to the U.S. market. C) Mexico wanted the United States to lower its high barriers to Mexican products. D) Canada wanted its firms to become more globally competitive. E) Mexico wanted to institutionalize its economic reforms.
Discuss differences in production technologies available in various countries as a basis for comparative advantage. In your answer, include a discussion of the role of and the location of R&D. In your answer, include a discussion of the role of and the location of R&D.
What will be an ideal response?
The production possibilities frontier:
A. can show us which possible combinations of goods society should choose, but cannot tell us which points will be inefficient. B. can show all possible combinations of goods but not tell us which combination society should choose. C. cannot show all possible combinations of goods because society is typically inefficient. D. can show the best combination of goods which society should choose.
Refer to the diagrams. In diagram (B) the profit-maximizing quantity is:
A. g and the profit-maximizing price is e.
B. h and the profit-maximizing price is e.
C. g and the profit-maximizing price is f.
D. g and the profit-maximizing price is d.