Which of the following is true about a lump-sum tariff?
A. Domestic firms' average cost curves are shifted up by the amount of the lump-sum tariff.
B. Foreign firms' marginal cost curves are shifted up by the amount of the lump-sum tariff.
C. Domestic firms' marginal cost curves are shifted up by the amount of the lump-sum tariff.
D. Foreign firms' average cost curves are shifted up by the amount of the lump-sum tariff.
Answer: D
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Schleppsi, a soft drink maker, is a monopsonist in the county where it manufactures all of the Diet Schleppsi it produces. Suppose the current daily labor cost to the firm is $35,000 with 99 workers and the total wage cost with 100 workers would be $36,000 . What will the market wage be if Schleppsi hires the 100th worker?
a. $35. b. $36. c. $100. d. $350. e. $360.
Ethan purchases a new house for $170,000 . Ethan's purchase of the house contributes $170,000 to which magnitude in the identity Y = C + I + G?
a. C b. I c. G d. None of the above are correct.
Which of the following would shift the production function upward?
A. an increase in the price of oil B. an improvement in technology C. a decrease in the supply of labor D. a decline in the birth rate
One major role that the government plays in the market economy of the U.S. is:
One major role that the government plays in the market economy of the U.S. is: A. Setting production targets for major industries B. Requiring minimum levels of employment in major industries C. Allocating resources in various market activities D. Setting laws governing economic activity