An import quota is
A. a tax on imported goods.
B. revenue producing for state governments but not the federal government.
C. a limit on the quantity of foreign goods that can be sold in a nation's domestic market.
D. deflationary.
C. a limit on the quantity of foreign goods that can be sold in a nation's domestic market.
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The supply of a good will tend to be highly elastic if
A) additional resources to produce the good can be obtained quickly and with no increase in cost. B) its price rises quickly and sharply when the demand increases. C) the good has few close substitutes. D) the good is generally classified as a luxury. E) the good is generally classified as a necessity.
The long-run industry supply curve in perfect competition is derived from the
a. short-run industry supply curve which shifts as new firms enter the industry. b. short-run industry supply curve which shifts as old firms exit the industry. c. freedom of firms from sunk costs so that new cost curves become long-run curves. d. All of the above reasons.
Education is subsidized because it generates beneficial externalities.
Answer the following statement true (T) or false (F)
________ is maximized in a competitive market when marginal benefit equals marginal cost
A) Selling price B) Deadweight loss C) Marginal profit D) Economic surplus