An increase in the U.S. price level, other things constant, will _____
a. increase U.S. exports and decrease U.S. imports
b. increase U.S. exports and leave U.S. imports unchanged
c. decrease U.S. exports and increase U.S. imports
d. decrease U.S. exports and leave U.S. imports unchanged
e. leave both U.S. exports and U.S. imports unchanged
c
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Answer the following statement(s) true (T) or false (F)
1. Firms are so diverse in size and organization that it is not possible to make any general statements about their behavior. 2. Economists attempt to understand firm behavior by making the generalization that firms act to maximize growth. 3. In order to maximize profits, firms should produce to the point where marginal revenue is equal to marginal cost. 4. If the total benefits received from drug enforcement exceed its total costs, then the government should expand its drug enforcement activity. 5. Total cost and marginal cost can both be plotted on the same graph since both include a measure of quantity.
Given the scenario described, if the market price of hammers increased from $8 to $11:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. total producer surplus would increase by $3. B. total producer surplus would increase by $6. C. total producer surplus would increase by $9. D. total producer surplus would increase by $4.
Which of the following is not true about a monopsonist?
a. It can set the wage rate and hire any desired number of workers at that wage. b. It is the only buyer of labor in a market. c. It usually extracts rents from its monopsony power. d. It determines the optimal employment-wage rate combination by equating the marginal revenue product of labor to the marginal cost of labor. e. It usually has to bargain with unionized workers.
Command-and-control policies:
A. allow a low-cost firm to abate more pollution. B. encourage firms to develop more efficient abatement technologies. C. usually result in relatively low compliance costs. D. allow us to predict the total amount of pollution that will be discharged.