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.
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.
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.