A national taco chain offers in-house customers free refills on drinks. It is clearly
A) attempting to increase its total profit.
B) generating a negative externality.
C) generating a positive externality.
D) engaging in predatory pricing.
E) doing none of the above.
A
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The argument that strategic planning is not likely to be practical due to insufficient information means that
A) because of trade secrets, the government does not know true cost relationships in any given industry. B) if the government had all the relevant information in a given industry then it could decide whether a subsidy would enhance the public's welfare. C) even if the government had all the relevant information in a given industry, it still could not decide whether a subsidy would enhance the public's welfare. D) due to recent cuts in the Department of the Census' sampling budgets, industry surveys are no longer reliable, so that there is no way to determine if a subsidy is in the public's interest. E) the government would need to employ its intelligence agencies in order to gain a complete understanding of the market.
There are no gainers from discrimination
Indicate whether the statement is true or false
The external shock that hit Mexico and other Latin American countries in the early 1980s that caused the Lost Decade was a collapse in world oil prices
Indicate whether the statement is true or false
Dumping is considered a practice that seriously harms domestic producers because
A. the quality of the dumped good is superior to that of the importing country. B. it establishes a price that cannot be met by domestic producers. C. it discriminates between wealthy and poor countries. D. it allows the exporting country to use poor quality materials.