Data on trade barriers, income levels, and the growth of per capita GDP indicate that
a. there is no link between trade restrictions and either the per capita income levels or growth rates of economies.
b. countries that impose high trade restrictions have both high income levels and rapid rates of economic growth.
c. countries that impose high trade restrictions have low income levels, but they have been growing rapidly in recent decades.
d. countries that have lower trade restrictions have both higher income levels and more rapid rates of economic growth than those with high trade barriers.
D
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What is the total revenue test?
What will be an ideal response?
Monopoly pricing prevents some mutually beneficial trades from taking place. These unrealized, mutually beneficial trades are
a. of little concern to society. b. a deadweight loss to society. c. a sunk cost to society. d. also observed in competitive markets.
Suppose labor and capitals are both used to produce output. In the long run, if the wage rate rises while the rental rate on capital remains unchanged,
A. market forces will come into play to bring the prices back to their earlier relationship. B. the process will become more capital intensive. C. the marginal product of capital will rise and the marginal product of labor will fall. D. the process will become more labor intensive.
Which would be an example of public ownership as a response to natural monopolies?
A. Federal Energy Regulatory Commission B. Federal Trade Commission C. U.S. Food and Drug Administration D. U.S. Postal Service