There is a strong consensus among economists in favor of free trade. Governments appreciate the reasons for free trade as well but they may sometimes restrict trade because
a. their absolute advantage is greater than their comparative advantage
b. their comparative advantage is greater than their absolute advantage
c. the trade generates negative gains
d. they may want to protect infant industries
e. they prefer dumping to trade
D
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Rent controls are designed to protect consumers from high rents.
Answer the following statement true (T) or false (F)
From the Monetarist perspective, the aggregate supply curve is
A) vertical. B) horizontal. C) sensitive to changes in the money supply. D) sensitive to changes in consumption.
Which of the following is a market structure of monopoly?
a. Few firms operating as price takers. b. Single firm operating as a price taker. c. Single firm that is a price maker. d. All of these are true.
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.