Import quotas:
Have the same effect on producers as export subsidies
Can be considered to be a form of voluntary export restraints
Require agreement between importing and exporting nations
Set the number of units of a product that can be imported
Set the number of units of a product that can be imported
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If a firm decreases its capital stock, real wages will likely ________ and the equilibrium quantity of labor will likely ________
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
If the Federal Reserve wants to reduce inflation from 4 percent to 3 percent permanently, how can that goal be achieved, and what impact will that have on employment in the short run and the long run? Support your answer with a graph of the Phillips
curve in the short run and the long run.
What challenges does the European Union face in the short, medium, and long run?
What will be an ideal response?
Which of the following is true?
a. The production possibilities curve indicates that it will be impossible to expand total output with the passage of time. b. As long as resources are scarce, output cannot be increased. c. The size of the economic pie is fixed, and therefore, if one individual has more income, others must have less. d. Over time, the output of goods and services can be increased through human ingenuity and discovery of better ways of doing things.