Refer to Edgeworth Box Economy. The initial holdings of an individual in an Edgeworth box is referred to as
a. the contract point.
b. the endowment point.
c. the Pareto preferred point.
d. the competitive equilibrium point.
b. the endowment point.
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It is easier for a monopolist to price discriminate between groups for a service than for a good because
A) it is easier to calculate average willingness to pay for services. B) it is easier to distinguish between groups of customers for services than customers for goods. C) it is easier for consumers to resell goods than resell services. D) customers for goods usually do not differ with respect to their average willingness to pay.
Suppose the majority of the shares of British Airways stock were sold to a firm in the United States. Assuming all else remains constant, this will
A) create a capital inflow in the United States. B) decrease the balance of the U.S. financial account. C) increase net portfolio investment in the United States. D) decrease the balance of the U.S. current account. E) decrease foreign direct investment in the United States.
One of the assumptions for the plug-in solution to provide consistent estimators of?1and ?2is that the erroruis uncorrelated with all the independent variables. ?
Answer the following statement true (T) or false (F)
If a small country imposes a tariff on imported motorcycles
A. the surplus of both the domestic producers and consumers of motorcycles will decline. B. the surplus of both the domestic producers and consumers of motorcycles will increase. C. the surplus of the domestic producers of motorcycles will increase, but the surplus of the domestic consumers will decline. D. the surplus of the domestic producers of motorcycles will decline, but the surplus of the domestic consumers will increase.