How does the imposition of a tariff reduce the price of imports?
a. At the lower quantity supplied, the price to the importer is lower than if there were free trade.
b. At the lower quantity demanded, the price to the importer is lower than if there were free trade.
c. Supply of the product is increased from domestic production, reducing the price of the imports.
d. Demand for the product is decreased, so that price must fall.
a
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An auto-insurance company introduces an anti-theft device that records how well the customer has secured his car. If the driver locks his car with the monitored lock every day, the rates go down. The company is trying to solve a __________problem
a. Adverse selection b. Moral hazard c. Forced bankruptcy d. None of the above
The symbol for the variance of a sample of observations (of a quantitative variable) is:
a. s2 b. a2 c. s d. a
Suppose that goods A and B are close substitutes and the price of good B falls. We would then expect an:
a. Increase in the quantity demanded of good B and a decrease in the demand for good A b. Increase in the demand for good A and a decrease in the quantity demanded for good B c. Increase in the demand for good A and the quantity demanded for good B d. Increase in the demand for goods A and B
Investment in human capital
A) is quite different from and has a much lower return than investment in physical capital. B) is just like investment in physical capital and has a return similar to that earned from other investments. C) is just like investment in physical capital but has a much greater return than do other investments. D) is not comparable to other investments in any way since human capital is embodied in the person.