If the tariff on computers is not changed, but the government then adds hitherto nonexistent tariffs on imported semi-conductor components, then the effective rate of protection in the computer industry will
A) increase.
B) decrease.
C) remain the same.
D) depend on whether computers are PCs or "Supercomputers."
E) no longer apply.
B
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A firm's cost can decrease for each of the following reasons, EXCEPT:
a. an increase in productivity due to experience. b. an improvement in productivity of capital employed. c. an improvement in work environment and quality of management. d. an increase in input prices.
Assume that Economy A and Economy B have the same resources, but that individuals in Economy A have specialized whereas individuals in Economy B have not. Given this information, you can determine that
A) Economy A will have a higher output than Economy B. B) Economy A will have a lower output than Economy B. C) Economy A and Economy B will have identical outputs. D) individuals in Economy A will have lower incomes than individuals in Economy B.
For a monopolist to maximize profits, its
A. price equals marginal revenue. B. marginal revenue exceeds price. C. price equals average total cost. D. price exceeds marginal cost.
Those who believe that wages adjust ________ to clear the labor market also believe that the ________ curve is vertical.
A. quickly; AD B. slowly; AD C. quickly; AS D. slowly; AS