U.S. firms can produce and sell electric fans for $25. The United States can also import electric fans from China at $40 each and from Canada at $45 each. Electric fans made in the United States, China, and Canada are identical. Currently, the United States imposes a 30% tariff on imported electric fans. From which of the following countries will the United States import fans?
a. China
b. Canada
c. It will import fans from neither China nor Canada.
d. It will import fans from both China and Canada.
Ans: c. It will import fans from neither China nor Canada.
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The shape of the productivity curve reflects the
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What is the short-run industry supply curve in a perfectly competitive industry?
What will be an ideal response?
In the _______ range of the aggregate supply curve, expansionary fiscal policy that causes aggregate ______ to increase will lead to a higher price level and a higher equilibrium level of real GDP
a. Keynesian, supply b. Classical, demand c. Intermediate, demand d. Intermediate, supply
Suppose a company sells its product for $5.00 . It's industrial engineers have informed management that hiring one additional worker will increase output by five units per hour. The company should hire the additional worker only if the wage rate is
a. $5.00 or less per hour. b. $1.00 or more per hour. c. $25.00 or less per hour. d. none of the above.