To justify infant industry protection:
a. firm must move down its average cost curve to produce more output.
b. a firm's average cost curve must shift upward over time.
c. a firm's total cost curve must shift leftward over time.
d. a firm's average cost curve must shift downward over time.
Ans: d. a firm's average cost curve must shift downward over time.
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________ in the foreign interest rate causes the demand for domestic assets to ________ and the domestic currency to depreciate, everything else held constant
A) An increase; increase B) An increase; decrease C) A decrease; increase D) A decrease; decrease
Economists often examine GNP to estimate changes in the well being of people. If one only studied GNP, which of the following would lead one to underestimate the true increases in peoples' well being?
a. Increasing average hours of work. b. Decreasing life expectancy. c. Increasing levels of pollution. d. Increasing amounts of production in the home.
Schleppsi, a soft drink maker, is a monopsonist in the county where it manufactures all of the Diet Schleppsi it produces. Suppose the current daily labor cost to the firm is $35,000 with 99 workers and the total wage cost with 100 workers would be $36,000 . What will the market wage be if Schleppsi hires the 100th worker?
a. $35. b. $36. c. $100. d. $350. e. $360.
Which of the following is true?
A. A nation cannot have a comparative advantage in the production of every good. B. A nation cannot have an absolute advantage in the production of every good. C. A nation can have a comparative advantage in the production of every good, but not an absolute advantage. D. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage. E. A nation cannot have an absolute advantage in the production of a good unless it also has a comparative advantage.