A demand and supply analysis of protectionism shows that it is not just a matter of domestic gains and foreign losses, but a policy that imposes substantial domestic costs as well.
Select whether the statement is true or false.
A. True
B. False
A. True
This statement is true. A demand and supply analysis of protectionism shows that it is not just a matter of domestic gains and foreign losses, but a policy that imposes substantial domestic costs as well.
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Autonomous easing of monetary policy involves ________
A) raising interest rates and shifting the MP curve to the right B) lowering interest rates and shifting the MP curve to the left C) raising interest rates and shifting the MP curve to the left D) lowering interest rates and shifting the MP curve to the right E) none of the above
Consider a competitive industry and a price-taking firm that produces in that industry. The market demand and supply functions are estimated to be: Demand: Qd = 10,000 ? 10,000P + 1.0MSupply: Qs = 80,000 + 10,000P ? 4,000PIwhere Q is quantity, P is the price of the product, M is income, and PI is the input price. The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and PI for 2015:
= $50,000 and 
I = $20The manager also estimates the average variable cost function to beAVC = 3.0 ?
0.0027Q + 0.0000009Q2Total fixed costs will be $2,000 in 2015. The optimal level of production for the firm is A. 1,000 B. 2,000 C. 1,500 D. 2,500 E. none of the above
Compared to taxing pollution, an advantage of auctioning pollution permits is that:
A. it ensures that all firms reduce pollution by the same amount. B. the largest reductions in pollution are made by the firms that can do so the most cheaply. C. auctioning permits raises revenue for the government. D. it allows the public to directly reduce pollution by purchasing permits.
In long-run equilibrium for a perfectly competitive industry, price equals
A. long-run average cost. B. short-run average cost. C. short-run marginal cost. D. All of the above are correct.