Which of the following statements is false?
A. If the United States imposes a tariff on Japanese car imports, the price of cars in the United States is likely to increase.
B. If the United States imposes a quota on Japanese car imports, the price of cars in the United States is likely to increase.
C. If Japan imposes a "voluntary export restraint" on car exports to the United States, the price of cars in the United States is likely to increase.
D. If Japan imposes a subsidy on car exports to the United States, the price of cars in the United States is likely to increase.
Answer: D
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By adding internal costs to external costs, we determine the total
A) private cost. B) social cost. C) psychological cost. D) marginal cost.
Economic models like the AD-AS model tell us:
A. how to determine which economic variables are changing. B. what to expect if we know what is happening. C. exactly what is happening. D. nothing useful about the real world.
Which of the following is correct?
A. The asset demand for money is downsloping because the opportunity cost of holding money declines as the interest rate rises. B. The asset demand for money is downsloping because the opportunity cost of holding money increases as the interest rate rises. C. The transactions demand for money is downsloping because the opportunity cost of holding money varies inversely with the interest rate. D. The asset demand for money is downsloping because bond prices and the interest rate are directly related.
Dynamic pricing allows a website to use the personal information collected on a customer, such as income or location, to individualize the price of a product for each customer. Economists consider this type of pricing an example of:
A. price gouging. B. consumer sovereignty. C. price discrimination. D. producer sovereignty.