The WTO has encouraged nations to replace their import quotas with tariffs. Why?
a. Quotas are more difficult to administer for the customs people.
b. Quotas are more discriminatory.
c. Quotas hurt domestic firms more than tariffs.
d. Quotas result in larger losses than tariffs with equivalent protection on domestic monopolists.
Ans: d. Quotas result in larger losses than tariffs with equivalent protection on domestic monopolists.
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The duration of the "short-run"
A) is one year. B) is the same for all goods. C) depends on the relative short-run elasticity of demand and supply for the good. D) depends on how long it takes consumers or firms to adjust for a particular good.
Answer the following statements true (T) or false (F)
1. In imperfect product competition, the output price is fixed to the firm. 2. The demand curve for labor is more inelastic under competitive conditions than under imperfect competition. 3. The backward-bending portion of the labor supply curve shows the income effect dominating the substitution effect. 4. Unions cause a lowering of wages in the unionized labor market. 5. Unions cause the wages to be lower in the non unionized labor market. 6. Increased licensing requirements reduce the supply of labor. 7. Unemployment rates in Japan are the highest compared to other developed countries.
If the actual price level is higher than the expected price level, the economy will: a. have no structural unemployment. b. experience a recession
c. experience stagflation. d. expand output in the short run. e. have no seasonal unemployment.
According to the text, The American Recovery and Reinvestment Act of 2009:
A. was successful. B. was unsuccessful. C. remains hotly debated whether it was successful or not. D. is known as the most effective legislation ever passed in U.S. history.