Free trade with other countries allows poor nations the opportunity to exploit their comparative advantage in agricultural goods.
Answer the following statement true (T) or false (F)
True
Poor nations need export markets. Export sales generate the hard currency (dollars, euros, and yen) that is needed to purchase capital equipment in global markets. Export sales also allow farmers in poor nations to expand production, exploit economies of scale, and invest in improved technology.
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The deadweight loss of taxation on a good is higher if ________
A) the demand or the supply of the good is relatively price elastic B) a progressive tax system is practiced C) a low rate of tax is imposed on the sale of the good D) there is only one seller in the market
Suppose a sushi restaurant is making significant economic profit in the short run. In the long run
A) more people will open sushi restaurants, reducing the economic profit for each restaurant. B) high barriers to entry keep people from opening sushi restaurants. C) the government will require the sushi restaurant to sell part of its interests in the city. D) more people will open steak restaurants, increasing the economic profit for the sushi restaurant.
Which of the following is NOT a characteristic of oligopoly firms?
A. non-price competition, such as advertising and promotions B. perfectly elastic demand curves C. product differentiation D. strategic dependence
Interlace, Inc produces and a unique soda. The company cannot price discriminate. The figure above shows Interlace's demand curve, marginal revenue curve, and marginal cost curve. Interlace, Inc is definitely
A) a perfectly competitive firm. B) not a perfectly competitive firm. C) a natural monopoly. D) None of the above answers is correct.