A problem associated with import substitution as an industrial policy is:
A. it often stays in place long after it was expected to lapse.
B. it removes the incentive for industries to be efficient.
C. industries are often chosen for political, not economic, reasons.
D. All of these are problems associated with import substitution policy.
Answer: D
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Chicken and fish are substitutes. Therefore, the cross elasticity of demand between chicken and fish is
A. negative. B. positive. C. zero. D. Any of the above is possible.
The reluctance to change the relative relationships between wage rates is called a
A) coordination failure. B) real rigidity. C) menu cost. D) macroeconomic externality.
If three residential cleaning service companies agree to reduce the number of homes they clean each month in an effort to raise the price for the service, this is an example of ________.
A) output restrictions B) monopolization C) resale price maintenance D) market division
Refer to the below table and information. What is the firm's total labor costs if it hires 6 workers?
In the table below, a monopsonist has the marginal-revenue-product schedule for labor given in columns 1 and 2, and the supply schedule for labor is given by columns 1 and 3.
A. $33
B. $48
C. $65
D. $84