A high-wage country cannot afford free trade with a low-wage country. The high- wage country will either be undersold or its workers will be forced to accept lower living standards
a. True
b. False
B
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Antitrust enforcement is primarily limited by the
a. cooperation of offending firms b. small number of cases c. unwillingness of damaged competitors to press charges d. limited amount of funding allocated by the government e. failure of judges to punish antitrust violators
Suppose fairness is defined as those with the highest incomes can afford to pay a greater proportion of their income in taxes. Then which of the following taxation systems would be consistent with this notion of fairness?
A. A true flax tax. B. A flat sales tax on consumption purchases. C. A progressive tax on income. D. A fixed federal tax of $5,000 that everyone pays regardless of income status.
Studies have shown that drinking one glass of red wine per day may help prevent heart disease. Assume this is true, and favorable weather has increased the grape harvest of California vineyards
In the market for red wine, these two developments would A) increase demand and increase supply, resulting in an increase in the equilibrium quantity and an uncertain effect on the equilibrium price of red wine. B) increase demand and increase supply, resulting in an increase in the equilibrium price and an uncertain effect on the equilibrium quantity of red wine. C) increase demand and decrease supply, resulting in an increase in the equilibrium quantity and a decrease in the equilibrium price of red wine. D) increase demand and increase supply, resulting in an increase in both the equilibrium price and the equilibrium quantity of red wine.
Refer to Table 13-4. Victoria's profit-maximizing quantity sold (Q) and price (P) are
A) Q = 4; P = $6. B) Q = 5; P = $5. C) Q = 6; P = $4. D) Q = 3; P = $7.