A government program that relies on high barriers to imported goods in order to stimulate domestic production of competing goods is an example of a(n) ________ policy
A) primary-export-led
B) import-substitution development
C) outward-looking development
D) linkage-effect
B
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(Long run) average cost curves are U-shaped when the production technology has increasing returns to scale and the firm faces recurring fixed costs.
Answer the following statement true (T) or false (F)
If real GDP increases from $5 billion to $5.25 billion and the population increases from 2 million to 2.02 million, real GDP per person increases by ___ percent
A. 5.0 B. 1.0 C. 2.5 D. 4.0
Suppose a perfectly competitive constant-cost industry is in long-run equilibrium when market demand suddenly increases. What would probably happen to a firm in this industry in the long run?
a. It would experience no change for the original equilibrium b. It would experience a higher equilibrium price c. It would experience a lower equilibrium price d. It would experience the same equilibrium price but would reduce its output e. It would experience higher average total costs and would reduce its output
Wage reduction policies are less common than layoffs because
A) workers never prefer wage reduction policies. B) workers always trust the firm to tell the truth. C) of asymmetric information. D) of adverse selection problems.