When a regulator allows a monopolist to set its price equal to long-run average cost, the regulator is practicing
A. average cost pricing.
B. operating cost pricing.
C. marginal cost pricing.
D. optimal cost pricing.
Answer: A
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What is the right statement on Hecksher-Ohlin Theorem?
a. Hecksher-Ohlin theory can be extended multi-countries, multi-sectors, multi-factors. b. Hecksher-Ohlin theory can only be extended into multi-factors case. c. Hecksher-Ohlin theory can only be extended into multi-goods case. d. Hecksher-Ohlin theory can not be extended beyond two-country, two-sector, two-factor model e. Hecksher-Ohlin theory can only be extended into multi-countries case.
In recent years, Taiwan has experienced increases in savings and investment. As a result of the higher investment and saving, we expect i. increases in physical capital. ii. increases in the inflation rate. iii. advances in technology
A) i and iii B) i and ii C) ii only D) ii and iii E) i, ii and iii
Catherine is risk averse. When faced with a choice between a gamble and a certain level of wealth, she will
A) always prefer the gamble. B) always prefer the certain level of wealth. C) prefer the gamble if the expected utility from it is higher than the utility from the certain level of wealth. D) prefer the certain level of wealth if the expected utility from the gamble is higher than the utility of the certain level of wealth.
Although the GATT was supported by most of the countries of the world, yet global trade shrank during the close of the last decade. This was due to:
a. growing suspicion among the nations of the world. b. hyperinflation in the major economies of the world. c. the recession which began in 2007. d. political turmoil in the Asian countries. e. the desire among the major players to dominate the international market.