Two cities A&B are deciding upon joint pollution laws. Right now they both face identical prices for their housing. If they decide that city A is to be a pollution free city "Clean town" and all the factories would locate in city B "Smogville", in the long run, we expect to see
a. Asthmatics moving to Smogville
b. Poorer families moving to Cleantown
c. Residents in both the cities relocating based on their tolerance for pollution
d. Residents in both the cities being worse off
c
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In the long run, the economic profits of Hoot's Chicken 'n' Ribs, a monopolistic competitor, are:
a. not eliminated, because competition is not perfect. b. not eliminated, because the demand curve slopes downward. c. eliminated due to firms entering the industry. d. eliminated due to firms leaving the industry. e. not eliminated, because firms cannot enter the industry.
The housing bubble experienced in 2006 in the U.S. was exhibited by the extraordinary rise in the ratio of prices of houses to rents on houses
a. True b. False Indicate whether the statement is true or false
The simultaneous import and export of goods in the same industry by a particular country is known as interindustry trade
a. True b. False Indicate whether the statement is true or false
At the end of the year, Ford realizes it has overproduced Fiestas, because 2,500 of them are left unsold. How is this accounted for in that year's GDP? The cars are:
A. considered durable goods, and their value will increase consumption. B. considered inventory and their value will increase investment. C. not counted until they are sold in next year's GDP. D. considered a bad thing and reduce the value of investment.