The effects of a tariff are
A) reduced quantity supplied overall, reduced quantity supplied by domestic producers, and a lower price.
B) reduced quantity supplied overall, increased quantity supplied by domestic producers, and a higher price.
C) reduced quantity supplied overall, decreased quantity supplied by domestic producers, and a lower price.
D) identical to the effects of a quota, except that the price of the good is higher.
B
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Normally an increase in the supply of a good will cause
A. a shift of consumer preferences in favor of that good. B. consumers to use more of that good and less of others. C. a shift of consumer preferences away from that good. D. consumers to use less of that good and more of others.
To calculate the cost of capital
A) it needs to know its economic profit. B) the firm must calculate the average weighted cost of debt. C) the firm needs to know how much debt it uses. D) the firm needs to know how much capital is has.
The prediction that workers get additional training only when the rewards from the training are expected to exceed the costs of the training (including the opportunity costs) is based on the:
A. cost-benefit principle. B. principle of comparative advantage. C. principle of diminishing returns to capital. D. scarcity principle.
According to your textbook authors, monetary calculation would improve if
A) the government subsidizes business production. B) the Fed sought to establish monetary equilibrium. C) Congress seeks to establish a budget surplus. D) domestic producers are protected from foreign competition.