When markets fail, public policy can potentially remedy the problem and increase economic efficiency

The proposal that trade agreements should include a system which monitors worker conditions and make the results available to consumers in the rich importing country

A) is consistent with the Invisible Hand paradigm. B) is consistent with the market failure approach. C) is consistent with the Ricardian theory of comparative advantage. D) is consistent with the scale economies approach to trade theory. E) is consistent with the principles laid out by the WTO.

With lags in monetary policy, an effective expansionary policy must be initiated many months ________ the start of the economic downturn it is intended to moderate, and this requires ________ economic forecasts

A) before, generating accurate B) before, ignoring C) after, generating accurate D) after, ignoring