Locating an American automobile factory in Chad is likely to
a. be successful (profitable) because the workers' wages are low
b. be successful (profitable) because Chad workers would be appreciative of the opportunity to work with modern machinery so that their productivity would be high
c. be unsuccessful (unprofitable) because of the absence of an infrastructure
d. be unsuccessful (unprofitable) because the Chad economy would be operating at more than full employment so that prices and wages would rise
e. be successful (profitable) because basic resources (such as raw materials) used in auto production would be exploited fully and would be cheaper than in the U.S.
C
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A government-imposed restriction on the quantity of a good that can be imported is
A) an embargo. B) a protective tariff. C) a quota. D) a health restriction.
Intellectual property
a. requires copyright protection that is expensive to obtain, but cheap to enforce b. usually ends up being owned by the government c. is costly to produce, but can be transmitted at low cost d. cannot be owned by anyone e. is usually located on college campuses
Why has nominal GDP increased historically more rapidly than real GDP in the United States?
a. because of inflation b. because of deflation c. because of statistical discrepancies d. because of high interest rates
If a monopolistically competitive firm is making positive economic profits, we would expect
A. entry of other firms. B. the firm to continue making the positive economic profits. C. the firm to hire more labor. D. the firm to expand market share and the industry to move toward an oligopoly structure.