Is there one optimal environmental standard for the entire world? If not, how might using trade barriers to enforce country-specific environmental standards reduce overall well being?
What will be an ideal response?
No; because differences in income and preferences make the ideal standards vary by country. Budgets and regulatory efforts are not unlimited, and the pressing problems and environmental resources that need protection are not the same. Countries will likely have different priorities. If one nation tries to impose its standards on another, this may actually reduce global well being. If resources and opportunities are different, so are the opportunity costs. One answer doesn't fit all.
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The United States and other industrialized countries experienced rising inflation accompanied by a recession during the 1970s. This phenomenon was described as (a)
a. hyperinflation. b. stagnation. c. stagflation. d. depression.
Refer to Figure 8.1. Which graph best represents a total cost function?
A. A
B. B
C. C
D. D
The value of a basket of goods and services was $1,500 in 2010 and $1,800 in 2012 . If 2010 was the base year, the price index for the year 2012 was _____
a. 110 b. 200 c. 120 d. 100
A manufacturer produces 1 million televisions in the first quarter of the year. It sells 900,000 of them before the end of the first quarter, and holds the others in its warehouse. How will the 100,000 unsold televisions be treated in the GDP statistics?
a. Since the televisions eventually will be bought by consumers, they will be included as consumption in the first quarter. b. Since the televisions were not purchased in the first quarter, they will be counted as an increase in second-quarter GDP. c. The televisions will be counted as a change in inventory in the first quarter and so will be included in first-quarter GDP. d. The televisions will be counted as a change in inventory in the first quarter, and when sold in the second quarter will raise second-quarter GDP.