Quotas and tariffs can:
A. have the same effect on the price of a domestically produced good if they are set appropriately.
B. yield the same amount of tax revenue if they are set appropriately.
C. never have the same effect on imports and import prices.
D. both increase international trade by the same amount if set appropriately.
Answer: A
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Which of the following statements regarding a monopolist is false?
A) The marginal revenue curve lies below the demand curve for the monopolist's output. B) Unlike a perfectly competitive firm, a monopolist faces little or no competition. C) The monopolist sets price equal to marginal cost to maximize profits. D) The monopolist may or may not earn positive economic profits.
If a perfectly competitive firm is incurring a short-run loss, it
a. then will incur a long-run loss b. will shut down c. will continue to operate in the short run if its fixed cost is covered d. will continue to operate in the short run if its variable cost is covered e. will raise its price in the short run
The misery index is calculated as the
a. inflation rate plus the unemployment rate. b. unemployment rate minus the inflation rate. c. actual inflation rate minus the expected inflation rate. d. natural unemployment rate times the inflation rate
If policymakers expand aggregate demand, then in the long run
a. prices will be higher and unemployment will be lower. b. prices will be higher and unemployment will be unchanged. c. prices and unemployment will be unchanged. d. None of the above is correct.