According to the Stolper-Samuelson theorem, a price change that reduces a country's production of its exportable product would
A. reduce the returns to the factor of production used intensively in the export industry.
B. raise the returns to all factors of production within the country.
C. reduce the returns to the factor of production used intensively in the import-competing industry.
D. reduce the returns to all factors of production within the country.
Answer: A
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During a recession, unemployment compensation payments increase without the need for any government action. This increase is an example of
A) discretionary monetary policy. B) automatic monetary policy. C) automatic fiscal policy. D) discretionary fiscal policy. E) government expenditure, but it is not an example of either discretionary or automatic policy.
All of the following are true regarding the Federal Trade Commission's (FTC) Bureau of Consumer Protection except which one?
A) It relies on consumers and competitors to report false advertising. B) It is a federal agency. C) It generally tries to convince companies to cease or alter false advertising. D) It cannot bring a civil case against a firm's managers for false advertising.
Suppose Chip's Chips produces bags of potato chips that sell for $3 a bag. What was the total revenue for Chip's Chips?
A. Cannot answer this question without knowing the cost per bag. B. Cannot answer this question without knowing the quantity of bags sold. C. Cannot answer this question without knowing the cost per bag and the quantity of bags sold. D. Cannot answer this question without knowing what market share they hold.
If a firm chooses to produce output at the point where MR equals MC,
a. then TR - TC will be maximized if there is a profit b. economic profits will be zero c. there will be positive accounting profits d. there will be positive economic profits e. average cost must equal average revenue