It is well documented that traveling on our nation's highways at lower speeds saves money on fuel and reduces accidents. Assume that a driver understands this but is unwilling to drive slower until he observes everyone else doing it
Can you make a parallel between this attitude and the case where countries will refuse to lower their tariffs unless their trading partners do the same?
The two arguments are equally flawed. If driving slower is going to save you money on fuel and will reduce your likelihood of having an accident you should drive slower. The same is true of tariff reduction. If reducing tariffs makes your country better off then it doesn't matter whether your trading partners follow your lead. You should cut tariffs anyway.
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If a duopoly has reached the monopoly outcome and only one firm increases its production, that firm's profit ________ and the other firm's profit ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) increases; does not change
Which of the following does not hinder economic development?
a. Lack of education b. Poor agricultural productivity c. Low investment in human capital d. Lack of technology e. Good nutrition