Tariffs lead to
A. the contraction of relatively efficient industries.
B. an over allocation of resources to relatively efficient industries.
C. an increase in the foreign demand for domestically produced goods.
D. an under allocation of resources to relatively inefficient industries.
A. the contraction of relatively efficient industries.
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Suppose the cost of producing two goods, x and y, can be represented as C = ax + by + cxy. If the measure of economies of scope, SC, is zero, then which of the following must be TRUE?
A) a = b B) a + b = -c C) c = 0 D) a = -b
Refer to Figure 9.1. If the government establishes a price ceiling of $20, the resulting deadweight loss will be
A) $0. B) $20. C) $30. D) $300. E) $600.
How do economists explain the shape of the Phillips curve? By arguing that
a. supply shocks and stagflation are inversely related b. changes in the money supply cause prices to increase c. when high rates of GDP growth occur, firms are willing to pay higher wage rates and are able to raise prices as well d. firms' profits rise when plant capacity increases e. wage and price controls work, at least in the short run
Frictional unemployment occurs when: a. a recent graduate is searching for his first job
b. a ski instructor is looking for a part-time job during summer. c. an engineer is looking for a new job after a recession. d. a stenographer is looking for a new job as his skills have become obsolete in the current labor market.