Embargoes are more likely to be effective when
A. a small county imposes an embargo on a large country.
B. the embargo is sudden and comprehensive when first imposed.
C. the demand for imports by the target country is relatively elastic.
D. the supply curve of the embargoing country is highly inelastic.
Answer: B
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If the World Bank makes loans to nations that can attract private funds
A) the increase in growth in that nation will spill over to other nations that are developing. B) the presence of the World Bank's loans will lead to even more private funds being attracted to that country. C) the World Bank's loans will crowd out the private funds made to developing nations to encourage economic growth. D) these loans will interfere in the private market for capital goods and can lead to inefficient investment.
Moving from a point inside the production possibilities frontier to a point on the production possibilities frontier, the opportunity cost of producing more of the good on the horizontal axis
A) increases. B) is infinite. C) decreases. D) is 0. E) is constant.