A country can never raise its standard of living by imposing a tariff
Indicate whether the statement is true or false
FALSE
Explanation: Large countries can improve their terms of trade through tariffs. This can raise overall welfare, especially if there is no retaliation.
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A firm purchases a factor of production in a competitive market. At the current purchase rate the MRP of the factor is greater than the marginal expenditure for the factor. Thus, the firm
A) can increase profit by reducing the employment of the factor of production. B) is now maximizing profit. C) should not use this factor of production because it has no potential in generating a profit. D) can increase profit by expanding the employment of the factor of production.
A country that typically runs a trade surplus is:
A. China. B. Canada. C. the United States. D. France.
Which of the following is not considered by economists to be an economic resource?
A. Money. B. Factory workers. C. Computers at a retail store. D. A forest.
Firms in imperfectly competitive markets are
A. completely inefficient. B. price takers. C. more efficient than firms in perfectly competitive industries. D. price makers.