If a textile worker earns $38,000 per year working in the textile mill on a job that was saved by a protective tariff costing consumers $148,000 per year (for that job alone), the textile worker could be paid $48,000 to stay at home all day watching TV until the protective tariff is eliminated, and consumers would still be better off by approximately
A. $48,000 per year.
B. $168,000 per year.
C. $18,000 per year.
D. $100,000 per year.
Answer: D
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If it costs View Your World, a high-end window manufacturer, $26 per window to install a higher quality glass in its windows and consumers will pay an additional $15 per window for the improvement, which of the following is true?
A) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost. B) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost. C) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost. D) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
Higher domestic interest rates encourage
A. U.S. investors to invest abroad. B. foreign investors to withdraw their funds from U.S. investment. C. U.S. investors to withdraw their funds from foreign investment.
Which of the following is/are part of Fayol's 14 principles of management?
The competitive market system:
A. encourages innovation because government provides tax breaks and subsidies to those who develop new products or new productive techniques. B. discourages innovation because it is difficult to acquire additional capital in the form of new machinery and equipment. C. discourages innovation because firms want to get all the profits possible from existing machinery and equipment. D. encourages innovation because successful innovators are rewarded with economic profits.