When tariffs are imposed, ______.
a. foreign trade expands, and domestic prices are lower
b. import producers benefit, and domestic producers suffer
c. gains to producers are offset by losses to consumers
d. benefits to consumers make up for producers’ losses
c. gains to producers are offset by losses to consumers
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The study of factors that contribute to the economic growth of a country is known as
A) savings economics. B) entrepreneurial economics. C) natural resource economics. D) development economics.
Think of the interest rate as the "price" of a home loan. Other things constant, if people expect interest rates to rise significantly over the next couple months, their willingness to purchase a home financed by a mortgage today will tend to
A) rise. B) fall. C) remain unchanged. D) do any of the above because home purchase decisions are independent of interest rates on mortgages.
Ronald Coase's insight regarding the firm was that
a. firms tend to be more profitable when economies of scale are greater b. uncertainty and information are the keys to perfect competition c. perfectly competitive firms tend to displace monopolies d. economic activity is best understood in terms of the transaction costs of exchange e. consumers often carry out transactions directly with resource suppliers
Gratin and Tambec sell retail goods and are the two largest sellers in their oligopolistic market. Which action indicates that the two firms are colluding?
a. Gratin tells its customers that it will match Tambec’s advertised prices. b. Gratin secretly coordinates its pricing strategy with Tambec. c. Tambec offers its customers better credit terms than those offered by Gratin. d. Tambec secretly tries to predict the pricing strategy of Gratin.