If a perfectly competitive industry is taken over by a single firm that operates as a single-price monopoly, the price will ________ and the quantity will ________
A) fall; decrease
B) fall; increase
C) rise; decrease
D) rise; increase
E) not change; decrease
C
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During a recession, unemployment rises and total output of the economy rises.
Answer the following statement true (T) or false (F)
Country A limits other nations' exports of coal to Country A to 1,000 tons of coal annually. This is an example of a(n)
A. export subsidy. B. voluntary export restriction. C. protective tariff. D. import quota.
The per person production function representing both physical capital per person (K/N) and human capital per person (H/N) is
A) Y/N = (K/N)b(H/N)c. B) Y/N = (K/N)b + (H/N)c. C) Y/N = (K/N)b - (H/N)c. D) Y/N = (K/N)b/(H/N)c.
Giffen goods have positively-sloped demand curves because they are
a. inferior goods with no substitution effect. b. normal goods with no substitution effect. c. inferior goods for which the substitution effect outweighs the income effect. d. inferior goods for which the income effect outweighs the substitution effect.