When an increase in the price of one good lowers the demand for another good, the two goods are called complements
a. True
b. False
Indicate whether the statement is true or false
True
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The primary difference between an import tariff and an import quota is that
a. tariffs cause prices to rise, but quotas do not b. quotas cause prices to rise, but tariffs do not c. tariffs result in a net welfare loss, but quotas do not d. quotas result in a net welfare loss, but tariffs do not e. tariff revenues go to government, but quotas benefit those with the right to sell foreign goods domestically
If both the market for a firm's output and the market in which it hires its labor are perfectly competitive, the firm's labor demand curve will be perfectly elastic
a. True b. False
Sally is shopping for textbooks at the beginning of the semester. What is one reason she might decide to not purchase a textbook?
A) Her expected producer surplus is positive. B) Her expected consumer surplus is negative. C) Her expected consumer surplus is positive. D) Her expected profits are positive.
Refer to the information provided in Figure 4.1 below to answer the question(s) that follow.
Figure 4.1Refer to Figure 4.1. If a 10-cent-per-apple tax is levied on imported apples, the United States will
A. import 2 million apples per day. B. import 4 million apples per day. C. import 6 million apples per day. D. import 8 million apples per day.