Expansionary government policies during a period of increasing globalization:
A. decreases unemployment in the nontradable sector and leaves unemployment in the tradable sector unchanged.
B. decreases unemployment in both the nontradable and tradable sectors.
C. increases unemployment in both the nontradable and tradable sectors.
D. decreases unemployment in the tradable sector but leaves unemployment in the nontradable sector unchanged.
Answer: A
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Answer the following statement(s) true (T) or false (F)
1. All cost increases are passed on to a firm's customers in the form of higher prices. 2. Higher fixed costs may cause a firm to shut down its operations but will not otherwise affect its production and pricing decisions. 3. Either a rise in marginal cost or a fall in marginal revenue could cause a firm to reduce its output. 4. Higher fuel costs would cause a delivery firm to raise the price it charges. 5. Higher insurance costs would cause a delivery firm to raise the price it charges.
Welfare economics explains which of the following in the market for televisions?
a. The government sets the price of televisions; firms respond to the price by producing a specific level of output. b. The government sets the quantity of televisions; firms respond to the quantity by charging a specific price. c. The market equilibrium price for televisions maximizes the total welfare of television buyers and sellers. d. The market equilibrium price for televisions maximizes consumer welfare and minimizes producer profit.
Which of the following arguments for farm subsidies is most closely associated with the parity concept?
A. Although farmers produce necessities for the rest of us, they receive low incomes that are declining in real terms, and should therefore receive price and income support. B. Farmers sell their output in purely competitive markets but must buy inputs from imperfectly competitive firms. C. Farmers cannot fully insure themselves against the risks unusual to farming, such as floods, droughts, and pests. D. The "family farm" is an American institution that should be protected and nurtured.
When goods and services are produced at the lowest possible cost, ________ occurs
A) efficient central planning B) equity C) productive efficiency D) allocative efficiency