Which of the following is an invalid argument for protection?
A) redistribution of income
B) infant industry protection
C) preservation of the home market
D) All of the above
C
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Refer to the figure above. What is the equilibrium quantity of bottled water?
A) 10 units B) 20 units C) 30 units D) 40 units
Mr. Paque is a bear hunter for timber companies that want to diminish damage to trees done by bears in the spring. Due to a reduction in the bear population between 1995 and 2005, Mr. Paque finds fewer bears each year and additional hours spent hunting produce fewer additional bears. This means that Mr. Paque’s (i) overall productivity has fallen; (ii) marginal product has fallen.
A. i and ii B. i not ii C. ii not i D. neither i nor ii
An apple farmer must decide how many apples to harvest for the world apple market. He knows that there is a one-third probability that the world price will be $1, a one-third probability that it will be $1.50, and a one-third probability that it will be $2. His cost function is C(Q) = .01Q2. If the farmer is risk neutral:
A. he strictly prefers producing the expected profit-maximizing quantity to producing nothing. B. he strictly prefers to produce. C. he is indifferent between producing the expected profit-maximizing quantity and producing nothing. D. he should produce at a quantity in between zero and the expected profit-maximizing quantity.
An equal increase in government purchases and taxes will cause
A) an increase in real GDP. B) no change in real GDP. C) an increase in the budget surplus. D) a reduction in cyclically adjusted budget surplus.