A crucial difference between the impact of an import quota compared to a tariff is that:
A. import quotas generate revenue to the domestic government, but tariffs do not.
B. import quotas generate no revenue to the domestic government, but tariffs do.
C. tariffs increase the prices paid by domestic consumers, but quotas do not.
D. both (a) and (c)
B. import quotas generate no revenue to the domestic government, but tariffs do.
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Dell Computers decides to produce PCs and sell them directly over the Internet and via Best Buy. This is an example of
A) incentives. B) a microeconomic decision. C) a macroeconomic decision. D) scarcity.
Moral hazard occurs when an agreement encourages undesirable behavior
Indicate whether the statement is true or false
The advantage of a "buy-and-hold strategy" is that
A) net profits will tend to be higher because there will be fewer brokerage commissions. B) losses will eventually be eliminated. C) the longer a stock is held, the higher will be its price. D) profits are guaranteed.
When demand is elastic, an increase in price will cause
a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue but an increase in quantity demanded. d. no change in total revenue but a decrease in quantity demanded.