A decrease in the price a firm receives for its output will lead the firm to:
A. expand output.
B. reduce output.
C. cut its payments to its factors of production.
D. leave output unchanged.
Answer: B
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The term or phrase most likely to indicate a normative statement is
A) "ceteris paribus." B) "factual." or "what is" statement. C) "holding other things constant." D) "should" or "ought to."
The establishment of GATT resulted in
a. lower tariff rates b. increased tariff rates c. decreases in total world trade d. increased protectionism e. a rise in the price of imports
In the language of international trade, "dumping" is the act of
A. producing goods without consideration of their environmental consequences. B. selling goods cheaper than the competition. C. selling goods below cost so as to drive competitors out of business. D. selling goods of substandard quality.
Why do markets exist?
a) Markets ensure that government does not intervene in the production of goods and services b) Markets provide self-sufficent people with public places for the exchange of ideas c) Markets ensure economic equity for all people d) Markets allow people to buy what they need to consume and sell the specialized goods and services they produce