In a perfectly competitive world:
A) two-way trade would not occur.
B) one-way trade would not occur.
C) neither one-way trade nor two-trade would occur.
D) both one-way trade and two-way trade would occur.
Ans: A) two-way trade would not occur.
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In the endogenous growth model with human capital, spending more time on education
A) decreases the growth rate and increases output in the short term. B) decreases the growth rate and decreases output in the short term. C) increases the growth rate and increases output in the short term. D) increases the growth rate and decreases output in the short term.
Happy Campers is competing in the camping market with Camping R Us. Happy Campers drops its price below its cost and, in doing so, drives Camping R Us out of the market. Once Happy Campers is a monopoly, they raise their price and enjoy economic profit. This is an example of ________.
A) market division B) resale price maintenance C) bid rigging D) predatory pricing
If an industry has constant marginal and average costs, any shift in demand will eventually
A) result in a higher equilibrium price. B) be met by a smaller change in quantity supplied. C) be met by an equal change in quantity supplied, and equilibrium price will not change. D) make economic profits zero in the short run.
In foreign-exchange markets, reporting dealers trade more foreign exchange with other reporting dealers than with any other category of users.
a. true b. false