Imposing a restrictive quota on imported plasma TVs will:
a. increase the price of the plasma TVs and decrease the quantity consumed.
b. increase both the price of the plasma TVs and the quantity consumed.
c. leave the price of the plasma TVs unchanged but decrease the quantity consumed.
d. leave the price and the quantity consumed of plasma TVs unchanged, because domestic producers will expand production to make up for the reduction in imports
a
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Which type of unemployment is the consequence of downturns in the business cycle?
A) structural B) expansionary C) cyclical D) natural E) frictional
Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift
A) leftward and the equilibrium price of leather shoes will fall. B) leftward and the equilibrium price of leather shoes will rise. C) rightward and the equilibrium price of leather shoes will fall. D) rightward and the equilibrium price of leather shoes will rise.
Which of the following causes the unemployment rate to understate the true extent of joblessness?
A) Many full time workers really want to be part time workers. B) A drug dealer reports herself as unemployed. C) Persons who collect unemployment benefits report themselves to be searching for a job. D) Discouraged workers are counted as unemployed. E) Discouraged workers are not counted as unemployed.
A patent or copyright is a barrier to entry based on
A) ownership of a key necessary raw material. B) large economies of scale as output increases. C) government action to protect a producer. D) widespread network externalities.