If the institutions in an economy decide to limit the legal back up that protected the interest of entrepreneurs, the returns-to-entrepreneurship curve in the economy will:
A) shift leftward. B) shift rightward.
C) become vertical. D) become horizontal.
A
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The official Federal Reserve strategy for implementing its monetary policy objectives is spelled out in the
A) Federal Reserve Board (FRB) Decree. B) Federal Reserve Bank Cooperative (FRBC) Proposal. C) Federal Advisory Committee (FAC) Statement. D) Federal Open Market Committee (FOMC) Directive.
The individual firm operating in a perfectly competitive labor market
A) can hire more labor only by offering a higher wage. B) faces an inelastic demand for labor. C) will pay less to the additional labor employed. D) can buy all the labor it wants at the going market wage rate.
The basic difference between a tariff and quota is that:
a. quota can be imposed both on imports and exports whereas a tariff can be imposed only on imports. b. quota yields revenue to the government whereas tariff does not yield any revenue. c. tariff reduces the import of the goods with greater certainty than quota as the amount of import restricted by quota depends on the price elasticity of demand for importable. d. tariff is a quantitative restriction on imports whereas quota is an import duty. e. a tariff raises the price of the product only in the domestic market whereas with a quota, both domestic and foreign producers receive a higher price.
A linear, upward-sloping supply curve has
a. a constant slope and a changing price elasticity of supply. b. a changing slope and a constant price elasticity of supply. c. both a constant slope and a constant price elasticity of supply. d. both a changing slope and a changing price elasticity of supply.