Which of the following is NOT true of nontariff barriers to imports?
A. Like tariffs, nontariff barriers result in a net welfare loss in a small country.
B. Some nontariff barriers create uncertainty about the conditions under which imports will be permitted.
C. Nontariff barriers can limit imports with greater certainty than tariffs.
D. Unlike tariffs, nontariff barriers do not increase the price of imported goods in the domestic markets.
Answer: D
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When a credit card company offers different services with its card, like travel insurance for air travel tickets purchased with the credit card or product insurance for items purchased with the card, the credit card company is trying to
A) shift the demand curve for competing firms to the right. B) create a perfectly competitive market in which to sell its credit card. C) create a barrier to entry for competing firms. D) convince customers that its card has greater value than those offered by rival firms.
An economic model will produce poor predictions if it includes unrealistic assumptions
a. True b. False
If the nominal interest rate was 12 percent and the inflation rate was 10 percent in 1980, while the nominal interest rate was 7 percent and the inflation rate was 2 percent in 2011, then
What will be an ideal response?
Which type of barrier to entry allows an electric company to maintain a monopoly over the production of electricity?
A. a patent B. ownership of a scarce factor of production C. diseconomies of scale D. economies of scale