Licensing is a process in which a firm wanting to enter a market must
a. require all potential customers to obtain government permission to purchase the product.
b. notify the government within a certain period after it has entered the market.
c. pay all overdue taxes before entering the market.
d. obtain permission from the government to enter the market.
D
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A country opens up to trade and becomes an importer of a sugar. In the sugar market, consumer surplus will ________, producer surplus will ________, and total surplus will ________
A) increase; decrease; increase B) increase; decrease; decrease C) decrease; decrease; decrease D) decrease; increase; increase
Which of the following is motivated by an equity concern?
A) The United States protects intellectual property rights, allowing inventors to prevent others from using their inventions without payment. B) Some U.S. colleges have cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need. C) Following the removal of subsidies in urban water use, household demand for water decreased quite significantly in Bogor, Indonesia. D) In November 2003, the Federal Communications Commission implemented the "local number portability" rule which gives cell phone customers the option of keeping their number when they switch carriers within the same geographic region.
When a government increases an effective price ceiling for a product
A) the shortage in the market will be reduced. B) the shortage in the market will be increased. C) the surplus in the market will be reduced. D) the surplus in the market will increase.
Please use a figure to discuss whether or not a devaluation under a fixed exchange rate has the same long-run effect as a proportional increase in the money supply under a floating rate
What will be an ideal response?