A supply restriction on imported goods, such as the government's restriction of imported oil for many years, is referred to as
A. an import quota.
B. a price floor.
C. an export quota.
D. a price ceiling.
Answer: A
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Bidding in a Dutch auction continues until ________
A) no bidder is willing to bid any higher B) a bidder accepts the price announced by the auctioneer C) a bidder bids above the market price of the good D) a bidder bids below the starting bid
The level of the capital—labor ratio that maximizes consumption per worker in the steady state is known as the
A) Solow residual capital—labor ratio. B) Golden Rule capital—labor ratio. C) q theory capital—labor ratio. D) dynamically efficient capital—labor ratio.
You are an analyst with a perfectly competitive firm that makes DRAM memory chips. You must manufacture the chips before you know what the demand will be. Based on the above figure, suppose you think demand will be high and manufacture the profit-maximizing quantity of chips. Demand, however, turns out to be low. Because you thought demand would be high, your profit will be ________ than if you
knew demand was going to be low.
A) $200 million more
B) $400 million less
C) $800 million less
D) $200 million less
The expected benefit of investment equals:
A. the real interest rate. B. the value of the marginal product of capital. C. private saving. D. the price of the capital good.