The main objective of financial liberalization is ________
A) to encourage financial innovation
B) to improve the allocation of financial capital
C) to discourage volatility in financial markets
D) to reduce the likelihood of a credit boom
B
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If the marginal rate of technical substitution for a cost minimizing firm is 10, and the wage rate for labor is $5, what is the rental rate for capital in dollars?
A) .5 B) 1 C) 2 D) 10
A country that must inhibit imports should give preference to
A. quotas over tariffs because quotas are less likely to distort trade patterns between nations. B. tariffs over quotas because, unlike quotas, tariffs offer no special benefits to inefficient exporters. C. export subsidies over quotas or tariffs because export subsidies can protect a nation’s domestic producers. D. an embargo wherever possible because an embargo can serve as a political weapon in addition to being a “trade stopper.”