A firm in a competitive market can change the market price by changing its own production level
a. true
b. false
Answer: b. false
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A key difference between tariffs and quotas is that
A) consumers are hurt with quotas but not with tariffs. B) consumers are hurt with tariffs but not with quotas. C) the government receives revenue with tariffs, but the importer receives added profit with quotas. D) the government receives revenue with quotas, but the importer receives added profit with tariffs.
Deposit insurance has not worked well in countries with
A) a weak institutional environment. B) strong supervision and regulation. C) a tradition of the rule of law. D) few opportunities for corruption.
In order to minimize deadweight loss generated by taxation, a tax should be placed on goods that are:
A. price elastic. B. price inelastic. C. expensive. D. popular.
Diminishing returns set in with the _____ worker.
