Suppose beer producers in Munich became aware of the low price of one barrel of beer in the domestic market relative to that in the United States. What will be the impact of this price difference?
a. Beer production in Munich will decline.
b. Price of beer in the domestic market will increase.
c. Beer production in the U.S. will increase.
d. Beer consumption in the domestic market will increase.
B
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Which of the following is an example of differentiated goods?
A) Books and cosmetics B) Fuel and water C) Potatoes grown by different farmers D) Tea and energy drinks
In the case of Matsushita v. Zenith, the fact that the foreign television manufacturers were able to charge lower prices than their domestic competitors in the U.S
market for televisions was sufficient evidence to conclude that the Japanese firms were engaged in predatory pricing. Indicate whether the statement is true or false
Use Tobin's q theory and the neoclassical theory of investment to explain why investment rises so rapidly once the economy has passed the trough of a business cycle
What will be an ideal response?
Free trade policies may lead to
A) a decrease in world output. B) price increases in world markets. C) some labor sectors experiencing some short-term job loss. D) none of the above.