When a domestic country exports goods to and imports goods from a foreign country, in the short run domestic:
A) producers in the exporting industry may be worse off.
B) consumers of the imported good may be worse off.
C) consumers of the exported good may be better off.
D) producers in the importing industry may be worse off.
Ans: D) producers in the importing industry may be worse off.
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A Nash equilibrium is an outcome where
A) both players are playing their best strategy, given the strategy chosen by the opponent. B) both players are playing their best strategy, regardless of the strategy chosen by the opponent. C) only one player can play his or her best strategy due to the strategy chosen by the opponent. D) neither player has a best strategy to play.
The typical shape of an isoquant is
A) linear and upward sloping. B) convex towards the origin. C) concave towards the origin. D) linear and downward sloping.
List the four major elements that determine productivity growth. Choose one of these factors and explain, using specific examples, the role that it has played in increasing productivity in the United States.
What will be an ideal response?
Suppose that in 2012 ABC Corp. produced 500 million units of a good at an average cost of $2, and in 2013 ABC Corp. expanded its plant capacity and produced 600 million units at an average cost of also $2. In this range, one can conclude that ABC Corp. is experiencing:
A. economies of scale. B. diseconomies of scale. C. neither economies of scale or diseconomies of scale. D. diminishing marginal product.