In the early 2000s, some argued that the Indian government impeded foreign investment with tariffs, investment caps, and tons of red tape. In terms of promoting or retarding economic growth, such policies:
A. increase growth because they keep people producing for the local market.
B. decrease growth because they slow the growth of capital.
C. increase growth because they stop exploitation by foreigners.
D. decrease growth because they cause inflation.
Answer: B
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On the graph above, a movement from point ________ to point ________ might represent a negative supply shock
A) H; G B) H; F C) F; I D) F; G E) none of the above
Learning by doing suggests that:
A. patents are more valuable. B. diminishing marginal productivity occurs more rapidly. C. greater experience increases efficiency. D. greater experience increases production costs.
Compared to a perfectly competitive firm, the demand schedule of a monopolistically competitive firm faces is
A. perfectly price inelastic. B. less price elastic. C. perfectly price elastic. D. more price elastic.
The accompanying figure shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist.
At this monopolist's profit-maximizing level of output, the deadweight loss to society equals:
A. $64 per day. B. $0 per day. C. $16 per day. D. $24 per day.