If the government enacts a tariff on a component imported by a domestic manufacturer from an international supplier, which of the following would be the best example of a disruptive outcome?
a. The manufacturer would pay a higher price for the component.
b. The manufacturer would seek an alternative supplier for the component.
c. The manufacturer would move production overseas to the country where the component is manufactured.
d. The manufacturer would negotiate a lower price for the component.
c. The manufacturer would move production overseas to the country where the component is manufactured.
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The poverty threshold income level equals the
a. average income of the bottom one-tenth of all income recipients. b. cost of an economical and nutritional food plan for a family multiplied by six. c. cost of an economical and nutritional food plan for a family multiplied by three. d. average income of a family headed by a worker who has been unemployed for six months or more.
For a monopolistically competitive firm,
a. marginal revenue and price are the same. b. average revenue and price are the same. c. at the profit-maximizing quantity of output, price equals marginal cost. d. at the profit-maximizing quantity of output, price equals the minimum of average total cost.
A recession has traditionally been defined as a period during which
a. nominal GDP declines for two consecutive quarters. b. nominal GDP declines for four consecutive quarters. c. real GDP declines for two consecutive quarters. d. real GDP declines for four consecutive quarters.
A fundamental aspect of public goods is that they
A. have positive externalities. B. are just like private goods EXCEPT that everybody wants to consume the same amount. C. are characterized by the principle of rival consumption. D. can be consumed jointly by many people simultaneously.