Import quotas on steel tend to result in higher quantities of steel being sold at lower prices than would be observed in the absence of a quota
Indicate whether the statement is true or false
False. The opposite is true. Quotas restrict the supply curve. This reduces quantity and raises price.
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When a firm is experiencing economies of scale
A. long-run average total cost is decreasing. B. minimum efficient scale has been achieved. C. a given percentage increase in output requires a more-than-proportionate increase in resources. D. an increase in output is accompanied by a more-than-proportionate increase in long-run average total cost.
XYZ Gadget Company is currently considering which investment projects it should undertake. The following list of projects along with the estimated rate of return of each project is presented to the executive management team:Project A (8.5%)Project B (7%)Project C (6%)Project D (11%)Project E (5.5%)The current interest rate in the loanable funds market is 5%. However, if an increase in government borrowing pushes the interest rate to 7.5%, we would expect the company to discontinue investment plans for all but ________ of its planned projects.
A. two B. three C. four D. one
When measuring GDP by the income approach, wage income includes i. health-care insurance paid for by the firm for its employees. ii. Social Security contributions made by the firm. iii. wages paid during a worker's vacation time
A) i, ii and iii B) i and ii only C) i only D) ii only E) ii and iii only
In the above figure, what is the quantity of workers that would be hired in a perfectly competitive market?
A) Q1 B) Q2 C) Q3 D) Q4