When can a country gain a price advantage on imports by imposing a tariff?
a. when it is the largest country with absolute advantage in all goods
b. when it has a comparative advantage in the production of all goods
c. when it can do so without other countries retaliating with tariffs
d. when trade agreements prohibit quotas but permit tariffs
c
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In financial markets, actual market prices sometimes diverge from the equilibrium price because
A) supply is often greater than demand. B) demand is often greater than supply. C) supply is equal to demand. D) of geographical and temporal fragmentation.
A Giffen good is a good for which
a. a decrease in the price decreases the quantity demanded. b. the substitution effect outweighs the income effect. c. an increase in the price decreases the quantity demanded. d. Both a) and b) are correct.
For most of U.S. modern economic history, when the unemployment rate is _______, real GDP is _________.
A) falling; rising b) falling; falling C) rising; unchanged D) rising; rising
The gift exchange motive suggests that
A. workers prefer a nice work environment, even if they must accept lower wages. B. workers value benefits like health insurance more than job security. C. workers who feel well treated will work harder and more efficiently. D. workers will shirk if they are paid a low wage.