Two countries engaged in trade in products with scale economies, produced under conditions of monopolistic competition, are likely to be engaged in
A) intra-industry trade.
B) price competition.
C) inter-industry trade.
D) Heckscher-Ohlinean trade.
E) immiserizing trade.
A
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Assuming a competitive world, does your country have a comparative advantage in making pizza? You can get your answer by
a. observing if your country makes more pizza than any other country b. comparing pizza prices in other countries c. calculating the opportunity cost of a pizza in your country d. comparing the opportunity cost of producing pizza in your country with the opportunity cost of producing pizza in other countries e. comparing your country's terms of trade to the terms of trade in other countries
Bank reserves will increase over time when:
a. the Fed sells government securities on the open market. b. the Treasury sells government securities on the open market. c. depositors take funds out of their checkable deposit accounts. d. the Fed buys government securities on the open market. e. the Fed lowers the discount rate.
Economic incentives are designed to make individual self-interest coincide with social interest. According to economists, which of the following methods of pollution control best uses economic incentives to reduce pollution?
A) rewarding environmental groups for monitoring the activities of private firms that produce products which generate pollution B) imposing quantitative limits on the amount of pollution and imposing a penalty for non-compliance with these limits C) requiring the installation of specific pollution control devices D) instituting a system of tradable emission allowances
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases. B. initially increases, then decreases. C. decreases. D. remains constant.