Refer to the above figures. A quota is placed on a foreign good. Which figure represents the situation in the domestic market for a competing domestic good?
A) Panel A
B) Panel B
C) Panel C
D) Panel D
B
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Stock prices are
A) based less on the current profitability of firms than on their expected future profitability. B) based equally on the current profitability of firms and on their expected future profitability. C) not based on the current profitability of firms or on their expected future profitability. D) based more on the current profitability of firms than on their expected future profitability.
The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains have not kept pace with the 3 percent rate of inflation. The Secretary's statement is a (n) ____ economic statement, and the labor head's statement is a (n) ____ economic statement
a. normative; normative b. normative; positive c. positive; normative d. positive; positive e. proper; improper
A direct relationship is expressed graphically as a:
a. positively sloped line or curve. b. negatively sloped line or curve. c. horizontal line. d. vertical line.
Answer the following statement true (T) or false (F)
1) Monopolistically competitive sellers realize economic profits in the long run because entry barriers are significant. 2) Monopolistically competitive sellers produce efficiently because they obtain only normal profits in the long run. 3) The oligopolist's kinked-demand curve is highly elastic below and highly inelastic above the going product price. 4) The oligopolist's kinked-demand curve is highly elastic below and highly inelastic above the going product price.