Define the term "import."
What will be an ideal response?
An import is a product produced in a foreign country and purchased by residents of the home country.
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The manager of a firm receives an engineering report claiming that an additional hour of capital would add twice as much output as would an additional hour of labor. According to the firm's accountants, an hour of capital costs 3 times more than an hour of labor.
(i) Is the firm on its expansion path? Why or why not? (ii) Suppose the firm is under contractual obligations to keep its output at current levels. What long-run adjustment (if any) should the manager make in the firm's employment of labor and capital? (iii) Sketch an isoquant-isocost diagram that illustrates the situation described in part ii. Label the initial situation "A" and the post-adjustment situation "B." The scale of your diagram does not need to be accurate.
If a worker receives 6 percent higher nominal wages over a year in which inflation is 2 percent, the worker's real wages have
A) risen by 8 percent. B) risen by 4 percent. C) risen by 3 percent. D) fallen by 3 percent. E) fallen by 4 percent.
Which of the following strategies is not an effective strategy to reduce monopoly inefficiency?
a. antitrust laws b. price discrimination c. doing nothing d. breaking up a natural monopoly into more than one firm
When the production of a good generates external costs, the firm's supply curve will be:
A. Below the true-cost supply curve B. Above the true-cost supply curve C. Vertical D. Horizontal