Subsidies are payments made by the government of a country to:
a. foreign firms to encourage imports.
b. foreign firms to encourage domestic exports.
c. domestic firms to encourage exports.
d. domestic firms to encourage imports.
e. domestic firms to ensure domestic consumption of their goods.
c
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
In the calculation of gross domestic product by the expenditure approach, the "investment" component is
A) net investment. B) gross investment minus depreciation. C) gross investment plus depreciation. D) gross investment.
Which of the following market models results in the highest level of consumer surplus assuming a fixed number of firms with identical costs and a given demand curve?
A) Cournot B) Stackelberg C) Monopoly D) Cartel
If the economy is in recession and the number of used baby clothing stores increases, then used baby clothes
a. are a necessity b. are an inferior good c. are a normal good d. are a luxury e. have price-elastic demand