When overall production is taken into account, trade restrictions, such as those enacted by the Smoot-Hawley trade bill,
a. save good paying jobs.
b. neither create nor destroy jobs; they reallocate them.
c. increase employment in the domestic industries that are most productive.
d. reduce imports, without affecting the volume of exports.
B
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One feature of the volunteer's dilemma is that as the group gets larger, individuals in the group are less likely to volunteer
Indicate whether the statement is true or false
Assume you borrow funds to buy a new car at 10 percent interest and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent
If you are correct in your assumption, your real rate of interest on the car loan will be A) 2 percent. B) 8 percent. C) 10 percent. D) 18 percent.
Taxes change behavior for all of the following reasons except they:
A. alter the incentives faced by market participants. B. drive a wedge between the price paid by buyers and the price received by sellers. C. result in a lower equilibrium quantity of the good or service being consumed. D. increase consumer and producer surplus experienced at market.
Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
A) a smaller trade sector B) a higher rate of investment C) higher tax rates D) greater use of taxation to transfer income from the rich to the poor