If a country engaged in free trade has an unlimited quantity of imports of a good available at a fixed price, the supply curve for that good is
a. upward sloping.
b. perfectly inelastic.
c. downward sloping.
d. perfectly elastic.
d. perfectly elastic.
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Stabilization policies are actions taken to bring the economy closer to full employment
Indicate whether the statement is true or false
If a firm is a monopsonistic hirer of labor:
a. its marginal expense for labor is greater than the market wage. b. its marginal expense for labor is equal to the market wage. c. its marginal expense for labor is less than the market wage. d. it is a price taker in the labor market.
For which of the following problems can well-designed public policy enhance economic efficiency?
a. both externalities and market power b. externalities, but not market power c. market power, but not externalities d. neither externalities nor market power
Centralized decisionmaking is most commonly found in
A. emerging economies and industries. B. firms that are expanding into other geographical areas. C. highly vertically integrated firms. D. stable industrial environments.