If a small plant is more efficient than either a medium-sized or a large plant, the situation must be one of
a. increasing returns to scale.
b. decreasing returns to scale.
c. constant returns to scale.
d. None of these.
b. decreasing returns to scale.
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A(n) ________ is a tax on an imported good
A) export quota B) tariff C) voluntary export restraint D) import quota
When economists David Gould, G.L. Woodbridge, and Roy Ruffin examined the data on the relationship between increases in imports and the rate of unemployment, they concluded that
A) free trade leads to increased unemployment. B) there is not a casual link between increases in imports and the rate of unemployment. C) increases in imports always precede increases in unemployment by a period of 6 months to one year. D) increases in unemployment always precede increases in imports by a period of 6 months to one year.
A difference between moral hazard and adverse selection is that
a. moral hazard deals with pre-contractually determined public information b. moral hazard deals with post-contractually determined private information c. adverse selection deals with pre-contractually determined private information d. adverse selection deals with post-contractually determined public information
Income inequality is
A. Not an issue for wealthy countries such as the United States and Germany. B. Often greatest in the poorest countries such as Namibia and Botswana. C. Not an issue in the United States because of the progressive federal tax system. D. A global issue because the poorest tenth of the population gets 20-30 percent of total income.