When import quotas are imposed by a government
A) the domestic producers always lower the prices of their products to ensure that their products are sold.
B) the government is trying to discourage consumers from buying foreign-made goods.
C) the supply of the product on the domestic market increases.
D) the price ceiling for the product has to be lowered.
B
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Which of the following offers the best reason why restaurants are not considered to be perfectly competitive firms?
A) Restaurants compete in small market areas—neighborhoods and cities—rather than in regional or national markets. Therefore, restaurants are not small relative to their market size. B) Restaurants usually have entry barriers in the form of zoning restrictions and health regulations. C) Restaurants do not sell identical products. D) Restaurants have significant liability costs that perfectly competitive firms do not have; for example, customers may sue if they suffer from food poisoning.
A policy in which the money supply is kept growing at a constant rate regardless of the state of the economy is
A) a Taylor rule. B) a discretionary policy. C) a policy rule advocated by monetarists. D) advocated by activists.
Can information life-span be a determining factor in deciding which organization structure is superior?
The reason for the use of the "averaging equation" to compute the price elasticity of demand is that
a. it would be impossible to connect a change in price specifically to a change inquantity demanded otherwise b. the elasticity within a price range differs depending on whether you are measuring price increases or decreases c. otherwise, the answer is sometimes negative and sometimes positive d. it measures sensitivity to price changes more accurately e. economists find the average elasticity to be a useful tool in their research