In the long run, when economic profit is greater than zero in a perfectly competitive industry, _____
a. existing firms contract their production levels
b. firms suffer losses but decide to operate
c. there is an upward pressure on the market price of the good
d. new firms enter the industry
d
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Import quotas
A) are the same as tariffs. B) set the maximum quantity of a good that can be imported. C) are not used by the United States. D) set the minimum percentage of the value of a product that must consist of imported components.
Special interest group K receives a 1/1,000th slice of the economic pie. Its net benefit from either an economic growth policy or a transfer policy is $200,000. In order for group K to be indifferent between the two policies, the economic growth policy would have to make the size of the economic pie (Real GDP) grow by _________________. This type of analysis is used to show that special interest groups tend to press government for ______________ instead of ________________.
A. $200,000,000; economic growth; transfers B. $20,000,000; economic growth; transfers C. $200,000,000; transfers; economic growth D. $20,000,000; transfers; economic growth E. none of the above
The federal regulatory agency whose mission is to regulate workplace health and safety is the
A) AFL-CIO. B) FTC. C) OSHA. D) SEC.
Four possibilities are equally likely and have payoffs of $2, $4, $6, and $8 . The expected value is:
a. $5 b. $6 c. $7 d. $8