The trade barrier that involves levying one tariff rate for a certain amount of an imported commodity and a higher tariff rate for quantities in excess of that amount is the
a. export subsidy.
b. import subsidy.
c. tariff quota.
d. quality standards requirement.
c. tariff quota.
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Figure 5-8
In Figure 5-8, the consumer is indifferent between the combinations of beer and wine coolers indicated by points
A. A, C. B. B, D. C. C, B. D. A, B.
If every person is willing to accept money in payment, rather than goods and services, money serves as a:
a. medium of exchange. b. unit of account. c. store of value. d. coincident exchange.
If firms in a monopolistically competitive industry are incurring losses, in the long run
A. firms will leave this industry until the firms that remain are earning a positive economic profit. B. investment in this industry will increase to reduce production costs. C. firms will leave this industry until the remaining firms are earning a normal profit. D. the government will subsidize the losses incurred by these firms so as to maintain competition in the industry.
_____ is the practice of using extra resources to compete for obtaining monopoly, and leads to _____
a. X-inefficiency; a deadweight loss b. Rent seeking; a deadweight loss c. X-inefficiency; a loss in producer surplus d. Rent seeking; a loss in producer surplus