A. Increased competition for world producers
B. A wider selection of products for consumers
C. The utilization of the most efficient production methods
D. Relatively high wages levels for all domestic workers
Related Mcqs:
- What is more likely to be found in a free market economy than in a planned economy ?
A. an even distribution of income
B. an incentive to innovate
C. a wide range of public goods
D. full employment of labor - To maintain that South koreans are dumping their DVDs in the United States is to maintain that ?
A. Koreans are selling DVDs in the U.S below their production cost
B. Koreans are selling DVDs is the U.s above their productions cost
C. The cost of manufacturing DVDs in Korea is lower in Korea than in the U.S since wages are lower in Korea
D. The cost of manufacturing DVDs in Korea is higher in Korea than in the U.S since wages are higher in Korea - Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a ?
A. free-trade area
B. customs union
C. common market
D. monetary union - If a nation has an open economy it means that the nation ?
A. Allows private ownership of capital
B. Has flexible exchange rates
C. Has fixed exchange rates
D. conducts trade with other countries - To aid its calculator producers, suppose that the government provides them a subsidy of $10 for each calculator produced The amount of imports now equals _____ and the deadweight loss of the subsidy to the Canadian economy equals _________?
A. 20 calculator, $50
B. 20 calculator, $100
C. 25 calculator, $50
D. 25 calculator, $100 - Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point ?
A. F
B. a
C. H
D. I - Refer to Exhibit 6.If People in the economy expect inflation to be 3 percent and inflation is 3 percent the economy is operating at point ?
A. b
B. I
C. a
D. H - Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?
A. H
B. F
C. E
D. c - Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the economy to adjust to the long run natural rate on its own, ?
A. People will reduce their price expectations and the short run aggregate supply will shift right
B. People will raise their price expectations and aggregate demand will shift left
C. People will raise their price expectations and the short run aggregate supply will shift left
D. People will reduce their price expectations and aggregate demand will shift right - The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?
A. R&D generating welfare improved technology
B. development of more productive machinery
C. new work rules promoting workers efficiency
D. lower wages extracted from workers
