Aid is considered "tied" when it is
a. provided for restricted purposes
b. required to be used for purchases from the donor country
c. provided in exchange for the recipient's support in the United Nations
d. required to be used solely for either public or private projects
e. none of the above
B
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Trade diversion may be such that the combined welfare of two nations in the agreement actually ____ because of ____, not completely offset by the _____.
a. falls; loss of tariff revenue for the importing nation; gain in the exporting nation's producer surplus b. rises; gains from trade; loss of jobs in the importing industry c. rises; gain in tariff revenue; gain in jobs d. remains the same; loss of tariff revenue; gains from product variety
Government assistance to farmers, which seeks to maintain a target price by buying surplus output, results in
A) higher prices and less food for consumers. B) higher prices and more food for consumers. C) lower prices and less food for consumers. D) lower prices and more food for consumers.