During a year, the government of a country Orion imposed tariff on imported steel, arguing that imports had damaged the Orion steel industry. The government prohibited new investments in this industry and decided to phase out the tariff within the next eight years. This trade policy was based on the ________ argument in favor of trade protection
a. declining industries
b. antidumping
c. infant industry
d. national defense
a
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A rise in the multifactor productivity index means that at each (K/N) we have (Y/N) ________, which shifts the (S/N) curve ________, resulting in a movement of the steady-state intersection to the ________
A) rising, downward, left B) rising, upward, right C) rising, downward, right D) falling, upward, left E) falling, downward, left
Suppose there are 11 buyers and 11 sellers, each willing to buy or sell one unit of a good, with values {$14, $13, $12, $11, $10, $9, $8, $7, $6, $5, $4,}. Assume no transaction costs and a competitive market, what is the equilibrium price in this market?
a. 7 b. 8 c. 9 d. 10
The Consumer Price Index is due for a major overhaul mainly because it is
A. overestimating the annual inflation rate by over 2%. B. overestimating the annual inflation rate by over 1%. C. underestimating the annual inflation rate by under 2%. D. underestimating the annual inflation rate by over 2%.
During a study session for an economics exam with three other students, Peter Daltry commented on an example of a consumer who had to decide on number of slices of pizza and cups of Coca-Cola he would consume. Peter explained that "To maximize his
utility this consumer must equate the marginal utility per dollar for pizza and Coca-Cola." Was Peter's analysis correct? A) Peter described one of the conditions necessary for utility maximization. The consumer also must equate the marginal utility of pizza and the marginal utility of cups of Coca-Cola. B) Peter's statement is correct. C) Peter's statement is correct but we must also assume that the consumer is rational. D) Peter describes one of the conditions necessary for utility maximization. The second condition is that total spending on both goods must equal the amount available to be spent.