Imposing a restrictive quota on imported plasma TVs will:
A. increase the price of the plasma TVs and decrease the quantity consumed.
B. increase both the price of the plasma TVs and the quantity consumed.
C. leave the price of the plasma TVs unchanged but decrease the quantity consumed.
D. leave the price and the quantity consumed of plasma TVs unchanged, because domestic producers will expand production to make up for the reduction in imports
Answer: A
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When compared to a perfectly competitive industry, in a monopoly:
A) both consumer surplus and social surplus are larger. B) consumer surplus is lower but social surplus is larger. C) both consumer surplus and social surplus are smaller. D) consumer surplus is higher but social surplus is smaller.
Which of the following is subtracted from gross national product to arrive at the net national product?
a. net income of foreigners b. depreciation c. indirect business taxes d. transfer payments
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Suppose Country B decides to specialize in tomatoes, and Country A specializes in bananas. What terms of trade would both countries agree to? One tomato for:
A. four bananas B. six bananas C. one banana D. two bananas
Refer to the information provided in Table 6.3 below to answer the question(s) that follow. Table 6.3Dozens of Oysters per DayTotal UtilityMarginal Utility160?2104?3134?4152?5?8Number ofBeers per DayTotal UtilityMarginal Utility140?270?394?4114?5?14Refer to Table 6.3. Diminishing marginal utility sets in after the ________ dozen oysters per day.
A. first B. second C. third D. fourth