Suppose the world price of a shirt is $10. If the United States imposes a tariff of $5 a shirt, then the price of a shirt in the
A) world rises to $5.
B) United States rises to $15.
C) United States falls to $5.
D) world rises to $15
E) world falls to $5.
B
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In a market economy, what encourages firms to develop new products and production processes?
A) contracts B) insurance C) patents D) accounting rules
If firms meet together to decide on prices and outputs, there is
A. overt collusion. B. tacit collusion. C. price leadership. D. None of the above are correct.
If the MPP of an additional unit of labor is 4 units per hour, product price is constant at $5 per unit, and the wage rate is $19 per hour, then
A. The employer should lower wages and accept less employment of labor. B. The additional unit of labor should be employed. C. Product price must be reduced if profits are to be made. D. The additional unit of labor should not be employed because it costs more than it is worth.
The cost to taxpayers of smoking include
A. the cigarette taxes that are collected. B. decreased Social Security benefits to those who die prematurely from a smoking related illness. C. the increased cost of Medicaid patients who smoke. D. decreased long-term care costs for those who die prematurely from a smoking related illness.