Explain why in practice policy coordination is hard to achieve
What will be an ideal response?
One of reasons is that some countries might have to do more than others and may not want to do so. Second, countries have a strong incentive to promise to coordinate and then not deliver on that promise. Only when things are really bad, does coordination appear to take hold.
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The figure shows the market for books before and after a sales tax is introduced. Each week, the tax creates a deadweight loss of ________, decreases consumer surplus by ________, and decreases producer surplus by ________
A) $15; $10; $5 B) $12; $8; $4 C) $3; $10; $5 D) $3; $2; $1
The supply of labor to an industry will decrease when
A) the price of leisure falls. B) the income effect dominates the substitution effect. C) the demand for labor falls in the industry. D) workers receive better employment opportunities in other industries.