The substitution effect will never induce a consumer to buy more of a good when its price increases
a. True
b. False
A
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Price discrimination exists when
A) a firm charges different buyers different prices for its product but the costs are the same. B) each buyer is treated equally. C) sales are made below cost. D) a firm charges each buyer a price of the product in proportion to its costs.
Which of the following is an infant industry argument in favor of restrictions on foreign trade? a. Foreign producers must be prevented from exporting their goods below cost of production
b. Domestic workers must be protected from lower wages paid in foreign countries. c. The nation's security demands we ensure an adequate domestic supply of certain strategic goods. d. Do unto others as they do unto you. e. Industries in the early stages of development must be protected from competing with the more mature producers.
When will the difference between the actual deficit and the structural deficit be the smallest?
a. in a major recession b. in a major recession c. at full employment d. in an inflationary gap
If you take investment by U.S. residents in other countries and you subtract investment by foreign residents in the U.S., you will find
a. gross foreign investment b. net foreign investment d. gross domestic product e. negative net foreign investment