A voluntary restraint agreement:
A. does not, unlike a tariff, affect the price of imports.
B. is prohibited under the GATT treaty and has become less common recently.
C. does not, unlike a quota, affect the quantity of imports.
D. raises the price of imports in the same way as a quota.
Answer: D
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A firm can minimize cost by
A) picking the bundle of inputs where the lowest isocost line touches the isoquant. B) picking the bundle of inputs where the isoquant is tangent to the isocost line. C) picking the bundle of inputs where the last dollar spent on one input gives as much extra output as the last dollar spent on any other input. D) All of the above.
A bond is essentially:
A. an equity. B. a loan. C. a stock. D. a derivative.
An appreciation of the Japanese yen would shift the Japanese aggregate demand curve inward.
Answer the following statement true (T) or false (F)
Refer to the figure above. When the supply curve of flash drives is S2 and the demand curve of flash drives is D, what is the surplus in the market when the price is $7?
A) 0 units B) 10 units C) 20 units D) 40 units