Which of the following would NOT be a reason why developed nations would try to coordinate their macroeconomic policies?
A) To achieve a desirable level of world economic growth
B) To avoid imposing a disproportionate burden on one major country in its attempt to help other world economies
C) To stimulate production in other countries using the higher incomes generated by policy coordination
D) To coordinate retaliatory policies on developing countries' trade barriers
E) None of the above. That is, A, B, C, and D are all correct.
D
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The outcome of first-degree price discrimination is:
A) Pareto efficient with equity. B) Pareto efficient with inequity. C) Pareto inefficient with inequity. D) Pareto inefficient but is equitable.
Government antitrust activity led to the breakup of AT&T in the 1980s because, among other things, it felt that AT&T had too much control over the telecommunications market. What type of market failure was most likely involved?
A.) Inequity B.) Public goods C.) Externalities D.) Market power