International trade on the basis of comparative advantage maximizes world output and allows consumers to access better-quality products at lower prices than would be available in the domestic market alone
a. True
b. False
Indicate whether the statement is true or false
True
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Discuss the difference between first-best and second-best price regulation. In your answer, you should address why governments regulate markets and the difficulties faced when doing so.
What will be an ideal response?
Although tariff and quota protections for China auto imports were very costly to consumers, which of the following was a benefit?
a. Auto prices, compared with other prices in the economy, actually fell. b. Auto consumption skyrocketed, but there were environmental effects. c. Firms that were involved in joint ventures were able to "learn" and to significantly lower their costs. d. China's government realized it had to keep its hands off entrepreneurial concerns.
In 2011 the Department of Justice challenged AT&T's purchase of T-Mobile USA.
What will be an ideal response?
The tradeoff between equity and efficiency is evident in debates over
a. how progressive our tax code should be. b. how generous our government spending programs should be. c. the debate over international trade policy. d. the debate over labor unions. e. all of the above.