An increase in the interest rate will cause planned investment ______
Fill in the blank(s) with the appropriate word(s).
Ans: decrease
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The Sherman Act of 1890
A) established the corporate income tax. B) prohibited price-setting agreements among sellers. C) required employers to bargain collectively with labor unions. D) set maximum prices railroads could charge interstate shippers. E) set minimum prices railroads could charge without being guilty of unfair trade practices.
In the long run when a perfectly competitive firm experiences negative economic profits,
A) firms exit the industry, the market supply curve shifts rightward, and the market price falls. B) firms enter the industry, the market supply curve shifts rightward, and the market price falls. C) firms exit the industry, the market supply curve shifts leftward, and the market price rises. D) firms enter the industry, the market supply curve shifts rightward, and the market price rises.
Proponents of strategic trade policy contend that:
a. government should tax domestic firms to generate greater revenues. b. government should encourage imports to prevent monopoly in the domestic market. c. government should provide subsidies to domestic firms with decreasing costs. d. government should discourage domestic firms with decreasing costs from continuing production. e. government should tax domestic import competing firms.
Efficient production can be carried out anywhere on or below the production possibilities frontier
a. True b. False Indicate whether the statement is true or false