If there are no trade restrictions, a country will import a particular good if
a. domestic quantity supplied equals domestic quantity demanded at the world price
b. there is excess domestic quantity demanded at the world price
c. world quantity supplied is less than world quantity demanded
d. world quantity supplied is greater than world quantity demanded
e. domestic quantity supplied is greater than domestic quantity demanded at the world price
B
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In a 2-firm oligopoly, if you can choose to either be a simultaneous move Cournot competitor or a Stackelberg leader, you will always choose to be a Stackelberg leader.
Answer the following statement true (T) or false (F)
If a union raises the wage in its industry above equilibrium, then there is an increase in
a. structural unemployment which is part of cyclical unemployment. b. structural unemployment which is part of the natural rate of unemployment. c. frictional unemployment which is part of cyclical unemployment. d. frictional unemployment which is part of the natural rate of unemployment.
When there are no constitutional constraints on democracy, politicians will
A) find it advantageous to provide income transfers and other favors to interest groups in exchange for votes and political contributions, and this will eventually lead to budget deficits, high taxes, and economic stagnation. B) impose high taxes that will lead to budget surpluses, which will eventually undermine economic progress. C) be reluctant to run budget deficits during a recession and this failure will lead to economic instability and stagnation. D) be reluctant to impose regulations and eventually unbridled market competition will undermine economic progress.
Refer to Figure 5.2. On the graph that shows total costs, what is the level of variable costs when 6 units are produced?
A. $400 B. $100 C. $500 D. $50