Suppose the state of Illinois passes a law that bans smoking in restaurants. As a result, residents of Wisconsin who do not like breathing second-hand smoke begin driving across the border to Illinois to eat at restaurants there. Which of the following principles does this best illustrate?
a. People respond to incentives
b. Rational people think at the margin
c. Trade can make everyone better off
d. Markets are usually a good way to organize economic activity
a
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Bonds differ from stocks in all of these ways except
A. a purchase of corporate stock becomes a part owner of the corporation, while a bondholder does not. B. bondholders loan money to the corporation, which has priority for repayment, while stockholders may lose their investment. C. stockholders know with a high degree of certainty how much money they will get, while bondholders do not. D. All of these responses are correct.
Answer the following statements true (T) or false (F)
1. Forms of imperfect competition include monopoly, oligopoly, and monopolistic competition. 2. Oligopsony refers to a market in which there are a few buyers. 3. Monopsonistic competition is a market in which there are only a few sellers but each offers different conditions to sellers. 4. The rule of reason applies to antitrust activity. 5. The Clayton Act brought labor unions under the jurisdiction of the antitrust laws.
Research by economists Autor, Dorn, and Hanson revealed that during the period 1990 to 2007, U.S. regions that faced more competition from Chinese imports had _____________ unemployment rates and ______________ wages than U.S. regions that faced less competition from Chinese imports
A) lower; higher B) higher; lower C) lower; lower D) higher; higher
In the past few years two deviations from U.S. free trade policies have been _________________ and ______________________.
Fill in the blank(s) with the appropriate word(s).