Negative externalities result in unfair, excessively high prices

When monetary policies result in a worsening of economic performance, the least likely explanation is ________

A) a political business cycle B) changes in one or more key structural parameters of the economy C) a policy-induced change in the expectations and behaviors of households and businesses D) faulty interpretation of incomplete and ambiguous economic data

Which of the following is not a criticism of the national defense argument for trade restrictions?

a. National defense only makes sense in the absence of international trade. b. Stockpiling basic military hardware could eliminate the need to protect the domestic industry. c. Nearly all industries can make some claim to strategic importance, so such trade restrictions can get out of hand. d. National defense considerations can outweigh concerns about efficiency. e. Government subsidies to domestic producers may be more efficient than trade restrictions.