A. pursue free trade as a policy that leads to maximum global efficiency
B. grant subsidies to firms offering potential comparative advantage
C. provide loans to domestic workers in exporting industries
D. increase interest rates on loans made to firms in import-competing industries
Related Mcqs:
- 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 - The synchronized application of capital to a wide range of different industries is called __________ by its advocates?
A. balanced growth
B. capitalization
C. elasticity of capital
D. indivisibilities - If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?
A. an increase in the level of output
B. a decrease in the unemployment rate
C. an increase in the rate of inflation
D. All of these answers - According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ?
A. The economy will experience an increase in inflation
B. The economy will experience a decrease in inflation
C. Inflation will be unaffected if price expectations are unchanging
D. None of these answers - Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?
A. decrease government spending Which the shifts the aggregate demand curve to the left
B. decrease taxes, which shifts the aggregate demand curve to the right
C. decrease taxes, which shifts the aggregate demand curve to the left
D. decrease government spending which shifts the aggregate demand curve to the right - In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?
A. decrease; depreciate
B. decrease; appreciate
C. increase; depreciate
D. increase; appreciate - What is called when government spending overwhelms government revenue resulting in government borrowing ?
A. Budget deficit
B. Deficient financing
C. Unbalanced spending
D. Deficit spending - Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?
A. None of these answers
B. Disagree because they have different scientific judgments
C. really don’t disagree at all. It just appears that they disagree
D. disagree because they have different values - For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that ?
A. U.S oil companies and workers deserved higher incomes
B. U.S oil was of superior quality and merited higher prices
C. one should not be too dependent on foreign suppliers of crucial resources
D. The U.S government needed the quota revenue to balance its budget - Which of the following is a possible government objective as opposed to a policy ?
A. Lower interest rates
B. Lower taxation rates
C. Lower government spending
D. Lower inflation
