When Mexico suffered from capital flight in 1994, U.S. demand for loanable funds
a. and U.S. net capital outflow rose.
b. and U.S. net capital outflow fell.
c. fell and U.S. net capital outflow rose.
d. rose and U.S. net capital outflow fell.
b
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If a restaurant was a natural monopoly, its
A) marginal revenue curve would be horizontal. B) marginal revenue curve would be the same as its demand curve. C) marginal cost curve would still be declining when it crossed the demand curve. D) average total cost curve would still be declining when it crossed the demand curve.
The United States imposes a quota on sugar imports
a. because sugar is considered unhealthy b. because sugar cannot be produced in the U.S. c. to avoid having to pay billions of dollars annually to support domestic sugar prices d. to avoid having to pay billions of dollars annually to support foreign sugar prices e. because a tariff would not be efficient
Refer to the graph shown for a small country that is a price taker internationally.
Assume the foreign supply of this product is perfectly elastic at a price of $4 per unit. Starting from a free trade equilibrium, an import quota of 2,500 would cause domestic production to:
A. increase from 6,100 to 7,400. B. decrease from 4,800 to 3,600. C. increase from 2,400 to 3,600. D. decrease from 7,400 to 6,100.
Limited liability rules:
A. mean that bankrupt companies owe nothing to corporate bondholders. B. discourage investment in corporate stock. C. help prevent corporate fraud. D. encourage stock investing by limiting shareholder risk of loss.