A good economic theory:
a. rests on realistic assumptions
b. explains economic behavior and predicts well.
c. can best be expressed mathematically.
d. always provides a highly detailed analysis of an economic sector.
b
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According to this Application, tariffs in the United States are very high on textiles, apparel items, and footwear, and within these categories tariffs are highest on the cheapest products
These tariffs disproportionately impact lower-income households because A) only lower-income consumers buy cheap, imported products. B) these cheaper products tend to be purchased by lower-income consumers. C) higher-income consumers can deduct the tariff from their income taxes. D) higher-income consumers tend to refuse to purchase products with tariffs.
As China switches from catch-up growth to discovery-based growth, the pace of worldwide discoveries will increase and this will raise living standards
a. in the countries that China trades with. b. in China and its neighboring countries. c. in the United States d. in China e. in all countries
In this graph, how does DLR compare to DSR?
a. It applies to one firm, not many firms.
b. It is relatively more inelastic.
c. It indicates a reduced demand.
d. It is relatively more elastic.
Under which conditions might diseconomies of scale result?
A. improved coordination brought about by bureaucracy B. decreasing costs of inputs C. increasing output prices D. increased bureaucracy