When a country imposes a tariff:
A. the domestic price of the imported good falls.
B. domestic production of the good falls.
C. domestic consumption of the imported good falls.
D. domestic production of the good is unchanged.
Answer: C
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Consider the usual case where a higher wage rate increases firms' marginal costs. In this case, the industry's demand curve for labor
a. is more inelastic than the individual firms' demand curves would indicate. b. coincides with the horizontal sum of individual firms' demand curves. c. contains only substitution effects but no scale effects. d. is horizontal at the going market wage.
Today's U.S. dollar bills are "backed" by
A) nothing. B) Warren Buffet. C) barrels of oil. D) precious metals. E) U.S. Treasury Bonds.
Vertical contracts between manufacturers and retailers often aim to
a. Serve as a "signal" of the manufacturer's belief of the likely success of his product b. Reward the retailer for undertaking the risk inherent in introducing a new product c. Reimburse the retailer for the cost of managing an extended inventory d. All of the above
If an economic action generates more costs than benefits, the action
a. by definition increases the nation's economic welfare. b. should not be undertaken from an efficiency standpoint. c. should be subsidized by the government in order to make sure that it is undertaken. d. is desirable from a public welfare standpoint even though many individuals will be harmed.