Which of the following situations will arise in the domestic market following the imposition of an import ban?
A. imports increase, domestic production increases, prices increase
B. imports increase, domestic production decreases, prices decrease
C. imports decrease, domestic production increases, prices increase
D. imports decrease, domestic production increases, prices decrease
Answer: C
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If the price elasticity of demand for razors is 0.32, the demand for razors is
A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic. E) perfectly elastic.
Compared to receiving an equilibrium wage, workers who receive efficiency wages are ________ likely to take actions that will get them fired and are ________ likely to switch jobs
A) more; more B) more; less C) less; more D) less; less
An option buyer
A) has a greater insurance benefit than the purchaser of a futures contract. B) bears the risk of unfavorable price movements. C) is purchasing a naked option if he or she does not also own the underlying asset. D) generally will incur a lower cost than will the purchaser of a futures contract.
Which of the following is true of successful price discriminators? a. They make greater profits than by charging everyone a uniform price
b. Their customers must have different willingness to pay. c. Their customers must have difficulty reselling the good to other customers. d. All of the above are true of successful price discriminators.