In 2012, the United States imposed countervailing duties ranging from 24 to 36% (on imports of about solar panels from China. Which of the following do you predict will happen if the United States decides to eliminate these duties?
a. The U.S. price of solar panels will fall.
b. U.S. production of solar panels will rise.
c. U.S. imports of Chinese solar panels will fall.
d. The U.S. price of solar panels will rise.
Ans: a. The U.S. price of solar panels will fall.
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Which of the following statements is true?
A) A rational economic agent is not likely to optimize. B) Cost-benefit analysis can also be used for normative economic analysis. C) Cost-benefit analysis does not yield the same result as optimization analysis. D) The net benefit of an option that costs $50 and provides a benefit of $100 is equal to $150.
____________is the problem of preventing you from acting opportunistically after buying insurance
a. Moral hazard b. Adverse selection c. Decision making d. None of the above