Consider a tariff levied on the importer of a consumer good. The tariff is ultimately paid by

a. the importer.
b. the consumer.
c. competing foreign firms.
d. competing domestic firms.


b. the consumer.

Economics

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Suppose two countries have identical growth rates of real GDP and the same initial value of per capita real GDP. We know, then, that

A) living standards may differ in the two countries because we don't know how income is distributed in the countries. B) economic well being is the same in both countries. C) living standards in the two countries are probably identical, or very close to each other. D) life expectancies are the same in both countries.

Economics

An early sign that financial innovation might be leading toward a financial crisis is ________

A) deleveraging B) a bank panic C) a credit boom D) debt deflation

Economics

If the leading canned soup company introduces dozens of new flavors in order to dominate shelf space, the company is most likely trying to create a barrier to entry by

a. increasing the total investment needed to reach the minimum efficient size b. spending more on advertising than potential competitors can afford c. exploiting economies of scale d. crowding out the competition e. establishing an undifferentiated oligopoly

Economics

If a monopsony finds that its MRP is greater than its MLC, it

a. is doing the right thing to maximize profits b. should hire fewer workers to increase profits c. should hire more workers to increase profits d. should pay the workers a lower wage e. should produce less output

Economics