A prohibitive tariff has
A) only revenue effects.
B) only protective effects.
C) both protective and revenue effects.
D) neither protective nor revenue effects.
B
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A firm faces the following relationship between the real wage it pays and the effort exerted by its workers. The marginal product of labor for this firm is given by MPN = E (100 - N)/9
The firm will choose to pay a wage such that the effort level is A) 20. B) 24. C) 27. D) 29.
In the classical model,
A) unemployment will never exist since workers will be willing to accept lower wages and will then be able to find work. B) unemployment will never exist because employers will be willing to pay the wage rate demanded by the workers. C) wages will go up but never go down. D) full employment will never be reached.
There would be no reason for students to study the concept of opportunity costs if:
A.) The market mechanism functioned to allocate resources. B.) The government allocated resources. C.) The production possibilities curve bowed outward. D.) Resources were no longer scarce.
“The United States has more oil in Alaska than there is oil in Kuwait. Therefore, the United States should stop importing oil.” Evaluate this statement using economic analysis.
What will be an ideal response?