In economic terms, tariffs are preferred to quotas because
A) domestic manufacturers gain more producer surplus.
B) there is less loss of consumer surplus.
C) tariffs are easier to administer.
D) quotas create a greater production inefficiency.
E) given the way quotas are usually administered, tariffs cause a smaller net national welfare loss.
E
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The above figure shows the market for game day t-shirts. If the price of t-shirts is $8, then
A) the market is in equilibrium. B) there is a shortage and the price of t-shirts will rise. C) there is a shortage and the price of t-shirts will fall. D) there is a surplus and the price of t-shirts will fall. E) there is a surplus and the price of t-shirts will rise.
One of the problems created by price floors is that
a. consumers complain about high prices b. firms have no incentives to reduce cost c. excess supply is created d. people must learn to cope with excess demand e. technological change is significantly impacted
One drawback to a single currency is that
A) the exchange rate is more volatile. B) bond markets are larger and therefore harder to control. C) exporters and importers have fewer choices about how they will receive and make payments. D) individual nations cannot use monetary policy to stabilize the economy.
The ability of Intel to spread product development costs over a larger number of units of output arises from:
A. Economies of scale B. Diseconomies of scale C. Minimum efficient scale D. Constant returns to scale