The use of trade barriers to enforce standards abroad raises all of the following concerns EXCEPT
A) the potential deadweight losses in consumption and production at home.
B) the lack of agreement over specific content of standards.
C) the potential for the use of trade barriers to erupt into a bigger trade war.
D) the difficulty of knowing whether some of the concerns are over standards or veiled protectionism.
E) only small countries may be able to use trade barriers effectively.
E
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Refer to Figure 13-8. Based on the diagram, one can conclude that
A) some existing firms will exit the market. B) the industry is in long-run equilibrium. C) new firms will enter the market. D) firms achieve productive efficiency.
Refer to Figure 27-11. In the graph above, the shift from AD1 to AD2 represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B ________ $50 billion
A) may be greater than or less than B) would be less than C) would be greater than D) would be equal to