Why do nations often impose trade barriers that make it difficult for their own citizens to trade with people in another country?
What will be an ideal response?
Trade restrictions often provide benefits to highly visible special interest groups while imposing a less visible cost on the general populace.
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The "lemons problem" is overcome in the used car market by
A) strict government regulation of private deals between individual buyers and sellers of used cars. B) most used cars selling for well below their true values. C) "lemon insurance" policies being offered by insurance companies. D) the existence of used car dealers who are concerned about maintaining their reputations.
Given the above graph, as you move from input combination A to input combination C,
A. output is unchanged. B. cost is unchanged. C. the marginal rate of technical substitution increases. D. both a and b E. all of the above
The increasing availability of temporary job placement agencies and online job services has ________ the efficiency of matching workers and jobs, and has therefore ________ the natural rate of unemployment in the United States.
A. decreased; decreased B. increased; decreased C. increased; increased D. decreased; increased
A student receives a bachelor's degree in economics and then achieves gainful employment as an economic analyst with a Fortune 500 company. This new worker is likely to enhance the economy's productivity through:
A) scarcity. B) free goods. C) stable prices. D) specialization of labor.