If the United States raises tariffs on foreign goods, it may achieve
A. Higher production possibilities.
B. Greater profitability of import-competing firms.
C. Higher efficiency in domestic production.
D. Higher U.S. exports.
Answer: B
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An increase in unemployment will cause this year's production possibilities curve to shift inward toward the origin
Indicate whether the statement is true or false
Though many assets can be used as a store of value, money is a particularly attractive method to store value because
a. it increases in value as prices rise. b. its purchasing power does not decline when prices rise. c. it is the most liquid of all assets. d. it is backed by gold.
A monopoly is MOST likely to be temporary if the monopoly power is derived from:
A) high barriers to entry. B) a lack of substitutes for the monopolist's product. C) economies of scale. D) technological change.
If all firms pay an efficiency wage, then
A) there is no cost to shirking because the shirking worker can receive his high wage at another firm after being caught and fired. B) the macroeconomy would enjoy a prolonged period of near-zero unemployment. C) there is a cost to shirking because the efficiency wage is less than it would have been if only a few firms paid it. D) there is a cost to shirking because the shirking worker will spend a greater time unemployed after being caught and fired.