Most economists view capital controls:
A. favorably, since having them makes capital markets more efficient.
B. favorably, since this is the main way for countries to exploit their comparative advantage.
C. unfavorably.
D. unfavorably, emphasizing their harmful effects on developing countries.
Answer: C
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"Tariffs today in the United States are much higher than in the past." Is the previous statement correct or incorrect?
What will be an ideal response?
At the efficient level of production, ________
A) producer surplus must be greater than consumer surplus B) consumer surplus must be greater than producer surplus C) there is no deadweight loss D) the market price is greater than the monopoly price
Refer to the table below. The amount of currency held by the public ________, and the amount of reserves held by banks ________. It must be the case that, in 1932, the Federal Reserve ________. Currency held by public(in billions)Reserve-deposit ratioBank reserves (in billions)Money supply (in billions)December 1931$4.590.095$3.11$37.3December 1932$4.820.109$3.18$34.0
A. decreased; increased; performed open-market operations B. increased; also increased; injected reserves into the economy C. increased; also increased; increased the discount rate D. decreased; also decreased; kept the rate of inflation low
Some agricultural sub-Saharan nations of Africa have overfarmed and overgrazed their land to the extent that significant portions of it have turned into desert. This suggests that:
A. the production possibilities curves of such nations are more bowed out from the origin. B. the production possibilities curves of such nations have shifted inward. C. the production possibilities curves of such nations have shifted outward. D. these nations are operating at some point outside of their production possibilities curves.