An import quota on a product reduces the quantity of the product imported and
A. will not affect the price of the product to the consumers.
B. increases the price of the product to the consumers.
C. decreases the price of the product to the consumers.
D. increases the total quantity of the product consumed.
Answer: B
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Which of the following is likely to happen if a contractionary monetary policy is adopted?
A) Real wages will fall. B) The aggregate price level will increase. C) Equilibrium unemployment will fall. D) The real interest rate will increase.
The market demand curve for a particular good
A) is the horizontal sum of all individual demand curves for the good. B) may be less than an individual demand curve for the good. C) may or may not show a direct relationship between price and quantity demanded. D) will not be affected by any of the determinants of individual demand.
Briefly and concisely define the following terms and explain their relevance to the study of economics. a. industrial and craft unions b. closed shop c. union shop d. bilateral monopoly e. collective-bargaining agreement
What will be an ideal response?
In Figure 8.10, airline Fly Smart is initially a secure monopoly between two cities X and Y at point M, serving 300 passengers per day at the profit-maximizing price of $300 per ticket. Suppose that Fly Smart discovers that a second airline is contemplating entering the market. If the minimum market entry quantity is 130 passengers per day, what is Fly Smart's profit when it commits to the entry-deterring quantity?
A. $60,000 B. $44,400 C. $33,600 D. $29,600