A situation in which one firm's actions with respect to price, quality, advertising and related changes may be strategically countered by the reactions of one or more other firms in the industry is known as
A. economies of scale.
B. barriers to entry.
C. the concentration ratio.
D. strategic dependence.
Answer: D
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"More productive workers receive higher wages than less productive workers." This observation is a major flaw in which of the following arguments for protectionism?
a. The infant industry argument. b. The national security argument. c. The employment argument. d. The cheap foreign labor argument.
Suppose the population of a country falls, but its Real GDP remains constant. As a result, there is __________ economic growth
A) both absolute economic growth and per-capita real B) absolute economic growth, but not per-capita real C) per-capita real economic growth, but not absolute D) neither absolute economic growth nor per-capita real
Vertical equity holds that
A. those with equal ability to pay should bear equal tax burdens. B. those who benefit the most from governmental services should bear the higher tax burden. C. those with equal ability to pay should bear unequal tax burdens. D. those with greater ability to pay should pay more.
Social disapproval is likely to be more effective:
A. in a small town than a large city. B. in solving a free rider problem than a tragedy of the commons problem. C. than taxation. D. when community members have only spurious relationships with others in the area.