Which of the following factors would be most likely to encourage capital formation in a less-developed nation?
a. high and variable rates of inflation
b. tariffs and quotas that restrict international trade
c. a legal system that provides for secure property rights and even-handed enforcement of contracts
d. high marginal tax rates
C
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In the short run, when a firm is about to begin production it pays only:
A) variable costs. B) opportunity costs. C) sunk costs. D) fixed costs.
Marginal utility per dollar spent on good X is
a. total utility of X divided by its price. b. marginal utility of X divided by its price. c. the change in marginal utility of good X. d. none of the above
Suppose there is a simultaneous increase in demand and increase in supply. Given this information, we know with certainty that
A. the equilibrium price will increase. B. the equilibrium quantity will increase. C. the equilibrium price will increase, and the equilibrium quantity will increase. D. both the equilibrium price and the equilibrium quantity will increase.
One reason for the success that firms have in getting the government to erect and maintain barriers to foreign competition is members of Congress who engage in ________, where members in districts with protected industries agree to trade votes on issues
that concern other members in order to uphold tariffs. A) vote fixing B) gerrymandering C) logrolling D) filibustering