Which of the following is true?
a. Competition from abroad fails to provide domestic producers with a strong incentive to improve the quality of their products and keep their costs low.
b. When economies of scale are important in an industry, international trade benefits domestic consumers but harms domestic producers.
c. When economies of scale are important in an industry, international trade will be particularly important for domestic producers operating in small countries.
d. Economies of scale eliminate the potential gains from international trade.
C
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If demand increases while supply decreases, then the equilibrium price
A) always increases. B) always decreases. C) may increase, decrease, or stay the same. D) never changes.
Heartel was the only telecom service provider in Country A until the government decided to allow foreign telecom companies to provide their services in the country. Due to the impact of the new policy, the supply curve for telecom services from Heartel will: a. become less elastic
b. become more elastic. c. shift to the right. d. shift to the left.
All of the following are benefits of economic growth except
What will be an ideal response?
When the price of hot dogs at the supermarket increases, the quantity demanded of hot dog buns declines. This situation describes:
a. the income elasticity of demand for hot dogs. b. the income elasticity of demand for hot dog buns. c. the price elasticity of supply for hot dogs. d. the negative cross-price elasticity of demand for hot dogs and hot dog buns. e. the positive cross-price elasticity of supply for hot dogs and hot dog buns.