The above table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. The marginal propensity to consume in Syldavia is equal to
A) 0.80. B) 5.00. C) 0.75. D) 0.20. E) 0.40.
A
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The pattern of protection in industrial countries is particularly harmful to the interests of
A) low-income developing countries. B) high-income industrial countries. C) Asian nations. D) European nations. E) None of the above.
The equilibrium price of a good is:
(a) The price with which everyone is unhappy. (b) The price at which the quantity demanded and quantity supplied of a good are equal. (c) The price set by the regulators in the economy. (d) Both (b) and (c).
A tax on an imported good that raises its price is called a
A. tariff. B. quota. C. comparative advantage. D. comparative disadvantage.
Which of the following correctly describes the special interest theory of regulation?
a. Large numbers of poorly-organized consumers, each of whom have very little at stake in the outcome of economic regulation, capture the regulatory process and force regulated monopolies to accept negative economic profits. b. Large numbers of poorly-organized military veterans, each of whom have very little at stake in the outcome of economic regulation, capture the regulatory process and force consumer-products firms to convert their factories to produce military goods and services. c. Well-organized producer groups expect to profit from economic regulation and are able to persuade public officials to impose the restrictions that existing producers find attractive, such as limiting entry by new firms or competition by existing firms. d. Well-organized producer groups incur loss from economic regulation which force them to keep prices low, while consumers enjoy a larger surplus.