Figure (a) represents the domestic demand and supply of televisions. Suppose free trade is allowed and the current world price of televisions is P1 as shown in Figure (b). Now suppose the domestic government imposes a tariff increasing the domestic price to P3 as shown in Figure (c). This tariff will cause
a. imports to rise.
b. exports to become Qe.
c. the domestic quantity demanded to be satisfied entirely by the domestically quantity supplied.
d. All of the above.
c. the domestic quantity demanded to be satisfied entirely by the domestically quantity supplied.
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Which of the following is illegal under the Clayton Act of 1914?
a. Price discrimination as a tool for exploiting market power. b. A person serving on the board of directors of only one company. c. Automobile dealers selling cars from different manufacturers. d. Companies such as fast-food franchisers that allow franchisees to buy inputs, uniforms, and training from a source other than the franchiser.
The Federal Trade Commission was created by Congress as an expert body to
A) help small businesses compete by offering technical advice and assistance. B) help small businesses compete by providing low-interest start-up loans. C) prevent insider trading. D) promote competition by preventing trade practices held to be unfair. E) regulate prices on spot and futures markets.
Suppose firms in a perfectly competitive market are incurring an economic loss. As firms exit, the price ________ and the economic loss of the surviving firms ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases
The impact of technology on health care has
A) provided for a higher quality of life. B) increased health care costs. C) contributed to increased life expectancy. D) All of the above are correct.