If price is above the long-run competitive equilibrium level,
A. Firms will enter the market.
B. Firms will incur losses.
C. Firms will shut down.
D. The market supply will shift to the left.
Answer: A
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A country has a comparative advantage in the production of a good if its opportunity cost is lower compared to another country
Indicate whether the statement is true or false
Refer to Figure 9-5. As a result of the tariff, domestic producers increase their quantity supplied by
A) 6 million pounds of coffee. B) 18 million pounds of coffee. C) 26 million pounds or coffee. D) 38 million pounds of coffee.
The Smoot-Hawley Tariff Act of 1930 has generally been associated with
A) falling tariffs. B) free trade. C) intensifying the worldwide depression. D) recovery from the worldwide depression. E) non-tariff barriers.
A ____________ exchange rate policy is where the central bank will intervene as needed in the market to keep the currency value from moving rapidly in one direction.
a. soft peg b. floating c. hard peg d. defined