Restrictions on imports
A. usually have no long-run effects on an economy.
B. eventually reduce exports, too.
C. are the quickest way for a country in recession to start on a path of economic recovery.
D. enhance economic welfare by encouraging more exports.
Answer: B
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Which of the following is NOT statistically correlated with higher economic growth rates?
A) higher rates of private investment spending B) higher rates of government investment spending C) greater political stability D) higher fertility rates E) higher school enrollment rates
Which of the following is not an obstacle to achieving environmental efficiency through markets?
a. Transactions costs. b. Income effects. c. Free-rider problems. d. Private negotiations.
From the late 1990s into the early 2000s, Hong Kong suffered from deflation. Most economists believed that the period of deflation ended and that inflation would begin to pick up slowly. Prices, however, were believed to be held in check because the Hong Kong dollar is pegged to the U.S. dollar. What does the monetary authority in Hong Kong have to do to peg its dollar to the U.S. dollar?
A. It will sell Hong Kong dollars when the price of the Hong Kong dollar rises and buy them when the price of the Hong Kong dollar drops. B. It will raise tariffs when the value of the Hong Kong dollar falls and lower them when the value of the Hong Kong dollar rises. C. It does not allow free trade in U.S. dollars; the foreign exchange market is illegal. D. It will sell Hong Kong dollars when the price of the Hong Kong dollar drops and buy them when the price of the Hong Kong dollar rises.
If the market shares of the domestic automobile industry for Ford, General Motors, and Chrysler are 40%, 40%, and 20%, respectively, the Herfindahl-Hirschman Index (HHI) is
What will be an ideal response?