One big difference between tariffs and quotas is that tariffs:
A. raise the price of a good while quotas lower it.
B. generate tax revenues while quotas do not.
C. stimulate international trade while quotas inhibit it.
D. hurt domestic producers while quotas help them.
Answer: B
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If a firm is earning negative accounting profits, it implies
a. That the firm's economic profits are zero b. That the firm's economic profits are positive c. That the firm's economic profits are negative d. More information is needed to conclude about economic profits
Which of the following statements is correct?
a. When duopoly firms reach a Nash equilibrium, their combined level of output is the monopoly level of output. b. When oligopoly firms collude, they are behaving as a cartel. c. In an oligopoly, self-interest drives the market to the competitive outcome. d. An oligopoly is an example of monopolistic competition.
In the market for good X there are three buyers, Adam, Bill, and Carolyn. Adam buys 3 units of good X at $4, Bill buys 7 units of good X at $4, and Carolyn buys 8 units of good X at $4. One point on the market demand curve for good X consists of a price of _____________ and a quantity demanded of __________________ units
A) $4; 10 B) $4; 18 C) $4; 15 D) $5; 8 E) none of the above
Many conflicts over standards result from the differences in income between countries
Indicate whether the statement is true or false