An import quota on a product protects domestic industries by:
a. reducing the foreign supply to the domestic market and, thereby, raising the domestic price.
b. increasing the foreign supply to the domestic market and, thereby, lowering the domestic price.
c. increasing the domestic demand for the product and, thereby, increasing its price.
d. providing the incentive for domestic producers to improve the efficiency of their operation and, thereby, reduce their per-unit costs of production.
a
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Which of the following is not a result of imposing a rent ceiling?
A) There is a reduction in the quantity of apartments supplied. B) The marginal benefit of the last apartment rented is greater than the marginal cost of supplying it. C) There is an increase in the quantity of apartments demanded. D) Some consumer surplus is converted to producer surplus.
A feature of Bitcoin, a new type of electronic money, that make it attractive as a medium of exchange is
A) anonymous transactions. B) volatility of value. C) heavy regulations by the central bank. D) wide acceptance by businesses.
The idea that all potentially available alternatives can be ordered according to a consumer's preferences is called:
A. the consumption principle. B. the ranking principle. C. the choice principle. D. the more-is-better principle.
The largest spending category for state governments is
A. highway construction. B. education. C. border patrol. D. welfare.