The larger a country is relative to the rest of the world, the less likely it is to be able to produce a net benefit for its citizens by imposing an import tariff.
Answer the following statement true (T) or false (F)
False
Rationale: The larger a country is relative to the rest of the world, the more it is able to influence price in other countries by imposing an import quota -- which implies that is has a greater ability to export a larger burden of the tariff.
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The elasticity of demand along the demand curve shown in the above figure is constant and equal to 1. Thus
A) area 0BCF equals area 0AGF. B) area 0BCF equals area FGDE. C) area 0BCF equals area 0ADE. D) area ABCG equals area 0AGF.
A trade imbalance occurs when:
A. exports from and imports to a country suddenly decline. B. a country does not import or export any goods or services. C. the quantity of imports equals the quantity of exports, but are large relative to total output. D. the quantity of a country's exports differs significantly from the quantity of imports.
If the MPP is declining, ceteris paribus, the MRP must decline.
Answer the following statement true (T) or false (F)
Which of the following statements about natural monopoly is correct?
A) Governments regulate natural monopolies in order to ensure that costs of production are minimized. B) Governments regulate natural monopolies in order to ensure that the firm earns a normal profit. C) Governments regulate natural monopolies in order to prevent them from making profits. D) Governments regulate natural monopolies in order to keep their workers from earning wages that are too high.