The effect of an import quota is
A) to shift the supply curve up by the amount of the quota.
B) to lead to a decrease in demand.
C) to make the supply curve vertical at the amount of the quota.
D) to make the supply curve horizontal at the amount of the quota.
Answer: C
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If the average product of labor equals the marginal product of labor, then
A) the average product of labor is at a maximum. B) the marginal product of labor is at a maximum. C) Both A and B above. D) Neither A nor B above.
The term "open market operations" refers to the:
a. loan-making activities of commercial banks. b. effect of expansionary monetary policy on interest rates. c. operation of competitive markets in the banking industry as the result of deregulation. d. buying and selling of government securities by the Federal Reserve.
Specialization of labor occurs when work is assigned based on the: a. demands of the labor union. b. skills of the workers
c. experience of the workers. d. gender of the workers.
Publicly provided health insurance for the poor will
A. lower the price of health care to the non-poor. B. lower the price of health care to the non-poor and decrease the total amount of health care consumed. C. decrease the total amount of health care consumed. D. raise the level of health care consumed by the poor.