Which of the following identifies an important reason why empirical studies find that joining the European Economic Community (EEC) in 1973 may have imposed a substantial net cost on Britain?
A. Removal of trade barriers on imports from Australia and New Zealand
B. Trade creation for British manufactured goods
C. Withdrawal of subsidies received by British farmers
D. Trade diversion on agricultural products
Answer: D
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According to the Application, economist John B. Taylor found that the temporary tax cuts which were a part of the 2009 stimulus package
A) were primarily used to pay off home mortgage balances. B) were split very evenly between consumption spending and household saving. C) were very successful in stimulating consumption spending. D) did very little to stimulate consumption spending.
In relatively poor economies, modest expenditures on public health (immunization of children) can produce large improvements
What does this imply about the accuracy of the growth rate of real GDP as a measure of national well-being? How is the situation different in rich economies?