Suppose an early freeze decreases the supply of oranges. The equilibrium quantity in this market will not change after the change in supply if the demand curve were:
a. perfectly horizontal.
b. perfectly vertical
c. downward sloping.
d. upward sloping.
b
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The infant industry argument is based on the idea of
A) learning-by-doing. B) absolute productivity advantage. C) global monopoly. D) countervailing duties.
Anti-depressants Roche developed a treatment for a rare form of depression that kept patients feeling fine and kept them functioning normally. Sufferers greatly preferred this treatment over alternatives that would tend to put them into a near-catatonic
stupor. However, for a subset of the population with high levels of a certain enzyme, the drug could cause permanent damage and death. So Roche required regular blood tests, and refused to sell to any patients who's levels of this enzyme became elevated. Many blood labs sued to be allowed to perform these blood tests. Why was Roche reluctant to allow third-party blood tests?
The difference between GNP and NNP is equal to:
a. the statistical discrepancy in calculation. b. the capital consumption allowance. c. the transfer payments. d. the value of net exports. e. the change in inventory.
Consider a firm operating in a competitive market. The firm is producing 40 units of output, has an average total cost of production equal to $6, and is earning $240 economic profit in the short run. What is the current market price?
a. $0 b. $6 c. $10 d. $12