In regulated industries, the optimal regulation is to set price such that MC=P
a. True
b. False
Indicate whether the statement is true or false
False
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As a result of U.S. tariffs imposed on wool from New Zealand, the quantity of this wool that is imported has
A) not changed. B) increased a lot. C) decreased. D) increased a little. E) changed but whether it has increased or decreased is ambiguous.
If it is impossible to prevent someone from benefiting from a good regardless of whether or not the person paid for it, then the good is
A) nonrival. B) rival. C) nonexcludable. D) excludable.
Which group of countries benefits most from trade?
a. low-income countries b. low- and medium-income countries c. high-income countries d. medium- and high-income countries
If a price is below equilibrium,
A. A shortage will cause the price to rise and the quantity supplied to increase. B. A surplus will cause the price to fall and the quantity supplied to increase. C. A surplus will cause the price to fall and the quantity supplied to decrease. D. A shortage will cause the price to fall and the quantity supplied to decrease.