Which of the following situations will arise in the domestic market following the removal of an import quota?
A. imports increase, domestic production increases, prices increase
B. imports increase, domestic production decreases, prices decrease
C. imports decrease, domestic production increases, prices decrease
D. imports decrease, domestic production decreases, prices increase
Answer: B
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Economic prosperity returned under the New Deal programs of the 1930s
Indicate whether the statement is true or false
If 100% of individuals in a group are required to agree before an action can take place then _____
a. external costs will be high b. we cannot determine the level of external costs without additional information c. external costs will be zero d. external costs will be low
An import quota
A) is a price ceiling imposed on an imported good. B) is a price floor imposed on an imported good. C) is a supply restriction limiting the quantity of a good that can be imported. D) is a legislative requirement stating that firms which import some of their merchandise must hire a certain number of immigrant workers.
The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers b. closed circuit TVs throughout a warehouse c. requiring a kitchen remodeling contractor to be 'bonded' d. listening in on call center conversations