With a home monopolist, the imposition of a tariff results in:
a. a higher deadweight loss than a quota.
b. a higher price for consumers than a quota.
c. a lower deadweight loss than a quota.
d. the same welfare effects as a quota.
Ans: c. a lower deadweight loss than a quota.
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A complement is a good
A) of lower quality than another good. B) used in conjunction with another good. C) used instead of another good. D) of higher quality than another good.
Which of the following is an accurate difference between durables and nondurables?
a. When GDP rises rapidly, spending on durables soars while spending on nondurables remains stable. b. When GDP drops, spending on durables remains stable while spending on nondurables plummets. c. When GDP rises rapidly, spending on durables drops while spending on nondurables soars. d. When GDP drops, spending on both durables and nondurables also plummets.
According to the random walk theory of stock market? pricing,
A. if the price went up today it will probably go up tomorrow. B. people with economic training can make certain profits in the stock market. C. there are no predictable trends in stock prices. D. on any given? day, fifty percent of the stocks will increase in price and fifty percent will decrease in price.
If a firm's average total cost is less than price where MR = MC
A) the firm should shut down. B) the firm should raise its price. C) the firm should continue to produce the output it is producing. D) the firm should cut back on its output to lower its cost.