According to the Theory of the Second Best, why might market liberalization through elimination of some market distortions, such as particular trade restrictions, lead to social welfare losses?
What will be an ideal response?
Removing some distortions may increase the deadweight losses accrued from other distortions. This may lead to a net loss from reducing trade restrictions.
Economics
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The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index
A) the industry is an oligopoly. B) the industry is a monopoly. C) the industry is competitive. D) the firms in the industry will not be allowed to merge.
Economics
Voting power in the IMF is determined by a country's
A) political power. B) quota. C) size. D) All of the above.
Economics