Which of the following would result from a tariff?
a. An increase in government budget deficit
b. An increase in domestic production
c. A greater volume of international trade
d. Increased domestic consumption
e. Decrease in prices of the imported goods
b
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Which statement is accurate concerning the early history of globalization around the time of WWI?
a. In the decades before the war, international trade decreased steadily due to the colonial system. b. In the years after the war, rebuilding international trade was hampered most by the Nazi invasion of Europe. c. After the war, Great Britain's position was so strengthened that it could convince others to lower trade barriers. d. During the war, many trading relationships were destroyed, as trading partners became military adversaries.
Which of the following observations was made famous by Adam Smith in his book The Wealth of Nations?
a. There is no such thing as a free lunch. b. People buy more when prices are low than when prices are high. c. No matter how much people earn, they tend to spend more than they earn. d. Households and firms interacting in markets are guided by an "invisible hand" that leads them to desirable market outcomes.