Free trade:
A. discourages growth by increasing competitive pressures on domestic firms.
B. encourages growth by effectively eliminating all patent and copyright barriers to growth.
C. discourages growth compared to situations where the government strongly controls foreign trade.
D. encourages growth by promoting the rapid spread of new inventions and innovations.
D. encourages growth by promoting the rapid spread of new inventions and innovations.
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The commercial banks on Sunny Island have checking deposits of $4 million, reserves of $600,000, and loans of $2.4 million. The desired reserve ratio is 10 percent. The banks have ________ of desired reserves and ________ of excess reserves
A) $600,000; $0 B) $400,000; $200,000 C) $400,000; $600,000 D) $600,000; $200,000
Which of the following is a reason why the wage rate of high-skilled workers exceeds the wage rate of low-skilled workers?
A) The market for high-skilled workers is more competitive than the market for low-skilled labor. B) The demand for high-skilled workers exceeds the demand for low-skilled workers. C) The number of high-skilled workers exceeds the number of low-skilled workers. D) Low-skilled workers often are in the process of acquiring more human capital.