If the selling price of a firm's product is $500 and the estimated average cost of producing this product is $400, what is the firm's markup?
A) 15 percent B) 20 percent C) 25 percent D) 40 percent
C
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If a "certificate of convenience and public necessity" protects a monopolist's position, the barrier to entry this firm relies on is called
A) a tariff. B) a government license. C) a patent. D) economies of scale.
For a particular product, an effective price ceiling results in
A. demand equal to supply. B. quantity supplied greater than quantity demanded. C. quantity demanded equal to quantity supplied. D. quantity demanded greater than quantity supplied.
A tariff ranging from 28 percent to 113 percent on Chinese frozen shrimp is an example of
A. a policy protecting American consumers from foreign producers. B. a policy protecting American fisheries from overfishing. C. a policy protecting domestic producers from foreign producers. D. a policy using regulations and taxes to protect American consumers.
Which of the goals pursued by policymakers in an open economy is desirable because it reduces the uncertainty of conducting economic activity across borders?
A) exchange-rate stability B) monetary policy independence C) free capital flows D) appreciation of the domestic currency