Something that would not be considered a tool in pursuit of industrial policy would be:
A. incentives for foreign portfolio investment.
B. investment in research.
C. incentives for foreign direct investment.
D. All of these are examples of industrial policies.
A. incentives for foreign portfolio investment.
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An increase in a firm's fixed cost will not change the firm's profit-maximizing output in the short run
Indicate whether the statement is true or false
Which of the following statements best describes the trading characteristics of the United States and Japan?
a. The United States and Japan are extremely large economies that have comparatively many nearby trading partners, and quite high levels of trade by world standards. b. The United States and Japan are extremely large economies that have comparatively many nearby trading partners, and quite low levels of trade by world standards. c. The United States and Japan are extremely large economies that have comparatively few nearby trading partners, and quite high levels of trade by world standards. d. The United States and Japan are extremely large economies that have comparatively few nearby trading partners. Both countries actually have quite low levels of trade by world standards.
In the presence of a negative externality
a. the market solution is efficient, but the market price is too high b. the market price is efficient, but the corresponding quantity is inefficient c. the market solution results in too little output being produced d. the efficient outcome is determined where the marginal social cost and market demand curves intersect e. the efficient outcome is determined where the marginal cost and market supply curves intersect
Refer to the accompanying figure, which shows the market for cups of coffee. If all buyers' reservation prices increase by $1.00, then the equilibrium price of coffee would:
A. increase by more than $1.00. B. increase by $1.00. C. would not change. D. increase by less than $1.00.