A limit on the quantity of a good that may be imported in a given time period is a:
A. Trade restriction limit.
B. Tariff.
C. Quota.
D. Price effect.
C. Quota.
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If the price of motel rooms increases by 10% while the prices of other goods and services increase by 5% on average, the relative price of motel rooms has:
A. decreased by 5%. B. decreased by 10%. C. increased. D. remained constant.
The market to buy and sell organs:
A. is missing. B. has been banned by public policy. C. would create surplus for those who would interact in it. D. All of these are true.
If there are external benefits for good X then which of the following would be true?
a. The socially efficient amount of good X can be achieved if society subsidizes consumers of good X. b. The socially efficient amount of good X will be equivalent to the free market equilibrium quantity. c. The socially efficient amount of good X can be achieved if society taxes consumers of good X. d. The socially efficient amount of good X does not exist.
The public interest theory of regulation stipulates that government regulation of a natural monopoly is necessary in order to achieve the following, except:
A. Preventing the natural monopoly from harming society through its monopoly pricing B. Garnering for society at least part of the cost reductions from being a natural monopoly C. Avoiding the reduction in output associated with monopoly power D. Eventually breaking up the monopoly to achieve competition within the industry