A major difference between a tariff and a quota is that a tariff:
a. will reduce imports, but a quota generally will not.
b. can easily be rescinded, but a quota cannot.
c. will reduce the ability of foreigners to obtain the purchasing power to buy a nation's export goods, but a quota will not affect the foreign demand for the nation's exports.
d. typically generates tax revenue, while a quota does not.
d
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Which of the following prices could represent Eli's willingness to pay for a baseball glove if he observed the market price of $43 and decided not to buy one?
A. $37 B. $45 C. $50 D. None of these could represent Eli's willingness to pay.
A perfectly competitive firm is operating where its total revenue equals its total cost. In the short run, if market demand increases, this firm will have an economic
a. loss and reduce output b. loss while expanding output c. profit and reduce output d. profit while expanding output e. profit, but will not change output
If scientific research produces a technological breakthrough in the production of computer memory, then
a. business costs will increase, profits will fall, and production will decrease. b. business costs will fall, but profits will also fall, and production will decrease. c. business costs will fall, profits will improve, and production will increase. d. profits will increase because businesses will cut back production.
At all levels of production higher than the point where the marginal cost curve crosses the average variable cost curve, average variable cost
a. rises. b. remains unaffected. c. falls. d. All of the above are possible depending on the shape of the marginal cost curve.