Suppose that Canadian farmers can grow wheat more cheaply than can U.S. farmers. In the interest of efficiency, what is the desirable outcome?
A) Allow the Canadian farmers to sell their wheat for a lower price.
B) Pass a law in Canada mandating a minimum price for wheat equal to what is charged by U.S. farmers.
C) Pass a law in the United States mandating a maximum price for wheat equal to what is charged by Canadian farmers.
D) Have U.S. citizens boycott Canadian wheat.
Answer: A
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The Single European Act passed in 1987 sought to:
A) bring former communist nations into the EC. B) further integrate the European economies to promote trade and economic growth. C) establish the European nations as sovereign nations with no political ties to the center. D) impose stiff penalties for violating the exchange rate parities set in the ERM.
As a percentage of total federal expenditures, national defense spending has _____ since the mid 1950s
a. slightly increased b. risen precipitously c. essentially stayed the same d. declined