When a nation's national saving falls short of its domestic investment, it must be
A) experiencing a government budget surplus.
B) experiencing a government deficit.
C) a net lender to foreign nations.
D) a net borrower from foreign nations.
D
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Suppose that there is a negative externality associated with alcohol consumption in the United States. Will the United States be better or worse off if it eliminates all tariffs on alcohol imports?
a. The United States will always be better off when tariffs on imported alcohol are eliminated. b. The United States will always be worse off when tariffs on imported alcohol are eliminated. c. The United States will be no better or worse off when tariffs on imported alcohol are eliminated. d. The United States will be better off only if the private gains from trade exceed the increased social costs of alcohol consumption when tariffs on imported alcohol are eliminated.
Nash equilibrium is:
a. where one player maximizes his payoff and the other doesn't b. when each player's strategy is the best response to the other player's strategy c. where the outcome is always efficient d. difficult to determine