In a free trade area, member nations have no trade barriers among themselves, but are free to set their own trade policies toward nonmembers
a. True
b. False
Indicate whether the statement is true or false
True
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Use the following graph to answer the next question.
Assume that the economy is in a rapid expansion with a price level of P2 and output level Q2. The government then adopts an appropriate discretionary fiscal policy. What will be the most likely new equilibrium price level and output?
A. P2 and Q4 B. P1 and Q3 C. P1 and Q1 D. P2 and Q2
Which of the following is a problem associated with extreme levels of poverty?
A) High life expectancy B) High infant mortality C) High literacy D) Low fertility
The graph shows the market for cell phones. The government imposes a sales tax on cell phones at $10 a cell phone. The excess burden of the sales tax on cell phones is
A) $20,000. B) $15,000. C) $35,000. D) $7,500. E) $30,000.
Which of the following could explain a decrease in the demand for labor in a particular job?
a. additional training that increases the productivity of each unit of labor in this market b. an increase in the amount of risk associated with this job c. a decrease in the amount of risk associated with this job d. an improvement in the working conditions associated with this job e. a decrease in the productivity of each unit of labor in this market