Which of the following is an example of market governance?
a. A firm vertically integrating backward to own the necessary inputs
b. A firm entering into a contract with input suppliers.
c. A school recruiting a part-time teacher to cover for a permanent employee who falls very ill.
d. A school requesting its permanent employees to cover for a teacher who suddenly falls ill.
C
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The government debt is the difference between the current level of total expenditures and revenues
Indicate whether the statement is true or false
The Organization of Petroleum Exporting Countries is a
A. professional trade association for oil companies. B. cartel. C. consortium for joint ventures in oil exploration. D. loose collection of democracies that promote international pipelines.
The figure below shows the U.S. market for imported wine. For simplicity, we consider export supply curves to be flat. Chilean wine is available for $480 per barrel and French wine is available for $420 per barrel.
Suppose the United States has a tariff of $80 per barrel on imported wine. Then, the United States joins a free-trade area with Chile. Calculate the gain arising from trade creation after the United States joins the free-trade area.
A. $800 billion B. $550 million C. $250 million D. $50 million
The use of a tariff provides monopoly protection since
A. it reduces competition from imports by raising the import price. B. it allows more imports into the country. C. it expands tax credits. D. it reduces exporters' profits.