Which of the following is not a commonly-advanced argument for trade restrictions?
a. the jobs argument
b. the national-security argument
c. the infant-industry argument
d. the efficiency argument
d
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The purpose of a Clarke tax is to
a. give people an incentive to truthfully reveal their preferences for a public good. b. raise enough revenue to pay for a public good. c. give producers an incentive to supply nonrivalrous public goods in socially efficient quantities. d. prevent the dissipation of rents that would occur with a nonexcludable public good.
If new legislation allowed patients to sue their health-maintenance organization (HMO), we would expect the supply curve for HMO-provided health care to shift to the left and the price of such coverage to rise
Indicate whether the statement is true or false
How is graph 1 different from graph 2?
a. In graph 1 the demand curve slants down; in graph 2 the demand curve slants up.
b. The ATC curve is higher in graph 1 than in graph 2.
c. PLR is higher in graph 1 than in graph 2.
d. In graph 1 the demand curve shifts down; in graph 2 the demand curve shifts up.
Which of the following explains why small reductions in interest rates may not lead to an increase in investment spending?
A. Excess capacity gives businesses little incentive to expand production capacity. B. Banks are eager to make loans at the lower interest rate. C. Investment demand is elastic with respect to the interest rate. D. Improved expectations shift the investment demand curve to the right.