Which of the following subsidies is prohibited under World Trade Organization (WTO) rules?
A. Subsidies to assist firms in meeting environmental regulations
B. Subsidies to encourage firms in a developed country to export more
C. Subsidies to assist disadvantaged regions within the exporting country
D. Subsidies to research and development
Answer: B
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If the current exchange rate is 0.65 British pounds per dollar, what is the dollar price of one British pound? If the exchange rate changes to 0.70 British pounds per dollar, what is the new dollar value of one British pound?
What will be an ideal response?
Which of the following is a reason behind low standards of living in developing countries?
a. High human and physical capital per worker b. Low human and physical capital per worker c. Low birth rates d. High tax rates e. Low public expenditure
Considering a given increase in price due to a tax, the less price elastic the demand curve is, the:
A. larger the drop in equilibrium quantity. B. smaller the amount of deadweight loss created. C. larger the amount of deadweight loss created. D. more surplus that is transferred to consumers.
If good A and good B are substitutes and the price of good A decreases, the demand for good B will
A. not change. B. decrease. C. increase. D. become nonexistent.