An import quota on a product normally does all of the following except
a. reduces the volume of that product traded.
b. raises the price in the importing country.
c. increases the price everywhere.
d. reduces the price in the exporting country.
c
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The demand schedule for a commodity illustrates how the consumption of a commodity changes with changes in:
A) its price. B) tastes and preferences. C) supply. D) income.
The goal of any monopolist is to maximize:
a. economic profits. b. normal profits. c. price. d. consumer welfare. e. output.
Which of the following is not correct?
a. An example of adverse selection is man who tries to sell his used car without disclosing that it needs a new transmission. b. The "invisible hand" of a free market will always fix the problems of adverse selection and moral hazard. c. An employer may try to prevent a moral hazard problem by paying her workers an efficiency wage. d. One interpretation of gift giving is that it reflects asymmetric information and signaling.
A bond that never matures is known as a
a. perpetuity. b. an intermediary bond. c. an indexed bond. d. a junk bond.