At the core of the American trade problem is that
A. Americans spend too much on consumption.
B. the dollar is too low.
C. the Japanese are excluding American products by means of high protective tariffs.
D. American manufacturers are too quality conscious and should instead concentrate on reducing costs.
A. Americans spend too much on consumption.
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What is the rationale behind a cap-and-trade emission allowance system?
A) It creates a market for externalities. B) It disciplines polluting firms by specifying the maximum amount of emissions allowed and gives them permits to pollute up to their allowance. C) It provides firms with the incentive to consider less costly alternatives to pollution reduction by making firms pay for the right to pollute beyond their specified allowance. D) It raises revenue for the government through the sale of permits.
Which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study?
A) The United Auto Workers sign a contract raising wages and benefits 7% over the next 3 years. B) Real GDP grows by 2.3% in the second quarter. C) Avocado prices rise due to a late frost in California. D) Airlines raise ticket prices in response to rising fuel costs.