Governments often intervene in international trade and impose quotas to
A. shift a nation's production possibilities frontier.
B. improve the performance of multinational corporations.
C. increase revenues from export subsidies.
D. protect domestic industries from foreign competition.
Answer: D
You might also like to view...
Regarding costs, accountants _____; economists _____
a. identify stable and predictable costs for decision-making purposes; measure costs for financial reporting purposes b. identify stable and predictable costs for financial reporting purposes; measure costs for decision making purposes c. do not include opportunity costs; include opportunity costs d. include opportunity costs; do not include opportunity costs e. both b and c f. both a and d
Which of the following is false?
a. Rational expectations theory suggests that government economic policies designed to alter aggregate demand to meet macroeconomic goals are of very limited effectiveness, because when policy targets become public, people will alter their own behavior from what it would otherwise have been, and in so doing, they largely negate the intended impact of policy changes. b. If changes in inflation surprise people, they will have little effect on unemployment or real output in the short run. c. An unanticipated increase in AD as a result of an expansionary monetary policy stimulates real output and employment in the short run, but an anticipated increase in AD does not. d. Unanticipated increases in AD expands output and employment in the short run, but only increases the price level in the long run.