An effective import quota will
a. increase the revenue received by the exporting nation
b. eliminate all incentives for trade between nations
c. reduce the quantity demanded of the imported good
d. lead to a lower domestic price
e. lead to a higher price in the exporting nation
C
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A change in a person's money income changes real income and therefore changes the slope of the person's budget line
Indicate whether the statement is true or false
Wage and MFC differ for a monopsonist because:
a. the monopsonist is forced to pay a wage greater than the worker's MFC. b. the monopsonist must accept the market wage rate. c. workers are not as efficient when employed by a monopsonist. d. any wage increase applies to all workers, not just to the next hired. e. wage rate decreases force workers to work longer hours.
A university raises annual tuition by 10 percent. No other events have occurred, and the university's revenues have increased. It must be TRUE that
A. there was no associated change in quantity demanded. B. the associated change in quantity demanded was greater than 10 percent. C. the associated change in quantity demanded was smaller than 10 percent. D. the associated change in quantity demanded was equal to 10 percent.
Which of the following nations DOES use the euro and participates in the Treaty on European Union?
A) Sweden B) Denmark C) Portugal D) The United Kingdom E) Norway