25. Nations with greater economic freedom: a. usually achieve more economic growth than nations with less

25. Nations with greater economic freedom:
a. usually achieve more economic growth than nations with less
economic freedom
b. usually achieve less economic growth than nations with less economic freedom
c. usually achieve about the same economic growth as nations with less economic freedom
26. According to “The Power of Productivity”:
a. the majority of the world’s population lives in low-income countries
b. the disparity between rich and poor is the most serious problem facing the world today
27. Foreign aid:
a. is intended to enhance economic growth for the aid recipients
b. has led to higher economic growth rates for larger aid recipients
28. When a trade restriction is imposed on an imported good:
a. domestic producers will receive more producer’s surplus
b. domestic consumers will receive less consumer’s surplus
c. the loss to consumers will be greater than the gain to producers
29. The political reason that trade restrictions are imposed is:
a. trade restrictions improve a nation’s economic efficiency
b. trade restrictions benefit the domestic economy
c. the benefits of trade restrictions are concentrated on a few producers, while the costs are dispersed over many consumers
d. Both a. and b. above
30. If foreign governments subsidize exports to the U.S.:
a. U.S. producers will be put at a competitive disadvantage
b. the U.S. economy will suffer a net loss
d. Neither of the above

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