Suppose that the country of Pacifica imposes a quota on bananas. The reason that the government imposed this trade restriction could be
A) that the government of Pacifica needs to increase its revenue.
B) lobbying from banana farmers in Pacifica.
C) comparative advantage.
D) Both answers A and B are correct.
B
Economics
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As contrasted to the Keynesian view, mainstream economists believe that ________ than Keynesian economists believe
A) the real GDP growth rate is larger B) any crowding out effect is smaller C) the effects from fiscal stimulus are weaker D) potential GDP is less important E) the multiplier effect is larger
Economics
As a typical firm increases its output, its marginal cost
A) is constant. B) decreases at first and then increases. C) increases at first and then decreases. D) decreases. E) is negative at first and then positive.
Economics