An import quota is:
A. a restriction limiting the quantity of imported goods that can legally enter a domestic market.
B. a fixed fee that an importing firm must pay the domestic government in order to have the legal right to sell the product in the domestic market.
C. the fee an importing firm must pay to the domestic government on each unit it brings into the domestic market.
D. None of the statements are correct.
Answer: A
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A unanimity rule suffers from the holdout problem
a. True b. False
Consider a wine maker who has put her wine in bottles. The question is whether to store the wine for a marginal cost of $1 per year or to sell the wine today at a price of $10
If the interest rate is 6%, how much must the price of the wine increase in the next year to justify storing it? A) $1.66 B) $1.27 C) $0.72 D) $0.45
According to the interest rate effect, a decrease in the price level will
A) decrease the real value of money balances, which causes total planned real expenditures to increase. B) cause interest rates to fall, which generates an increase in borrowing, so that total planned real expenditures increase. C) lead to a decrease in net exports, which causes total planned real expenditures to decrease. D) increase the real value of money balances, which causes interest rates to increase, thereby reducing total planned expenditures.
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.If Starbucks and Dunkin Donuts are faced with the game in the figure shown, we can see that:
A. Starbucks has a dominant strategy, but Dunkin Donuts does not. B. Dunkin Donuts has a dominant strategy, but Starbucks does not. C. both companies have a dominant strategy. D. neither company has a dominant strategy.