Asset price bubble is an increase in the price of assets that goes far beyond what can be justified by improving the fundamentals.
Answer the following statement true (T) or false (F)
True
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A tariff can best be described as
A. an excise tax on an imported good. B. an excise tax on an exported good. C. a government payment to domestic producers to enable them to sell competitively in world markets. D. a law that sets a limit on the amount of a good that can be imported.
Which of the following can result in a market producing an inefficient quantity of a good? i. competition ii. an external cost or an external benefit iii. a tax
A) i only B) iii only C) ii only D) ii and iii E) i and iii
Which two factors make regulating mergers complicated?
A) First, the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice must both approve mergers. Second, the concentration ratios that are used to evaluate the degree of competition the merged firms face are flawed. B) First, the time it takes to reach a decision to approve a merger is so long that the firms often have new owners and mangers. Second, by law, government officials are not allowed to consider the impact of foreign trade (exports and imports) on the degree of competition in the markets of the merged firms. C) First, it is not always clear what market firms are in. Second, the newly merged firm might be more efficient than the merging firms were individually. D) First, firms may lobby government officials to influence their decision to approve the merger. Second, by the time the government officials reach a decision regarding the merger, the firms often decide not to merge.
A competitive firm will use a factor of production as long as its marginal revenue product exceeds its unit cost.
Answer the following statement true (T) or false (F)