The Republic of Zander is a member of the European Union (EU). As an EU member, the Republic of Zander gives cash grants to domestic agricultural producers. Which of the following instruments of trade policy is being used by the government of The Republic of Zander?
A. local content tariff
B. import quotas
C. ad valorem tariff
D. antidumping duties
E. subsidies
Ans: E. subsidies
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An increase in the money supply will cause which of the following to occur?
A) a rightward shift of the aggregate supply curve B) a leftward shift of the aggregate demand curve C) a leftward shift of the aggregate supply curve D) a rightward shift of the aggregate demand curve
Pain, suffering and disfigurement are forms of
a. compensatory damages b. punitive damages c. economic damages d. all of the above.
A student has just written on an exam that, in the long run, fixed cost will make the average total cost curve slope downward. Why will the professor mark it incorrect?
A. In the long run, firms have no fixed cost—all costs are variable. The shape of the long-run average total cost curve is determined by economies of scale. B. In the long run, fixed cost increases as firms build new plants and purchase new capital. This means that the average total cost curve will eventually slope upward. C. In the long run, fixed cost decreases as costs are spread out over a greater quantity of output. Declining fixed cost accounts for the downward-sloping average total cost curve. D. In the long run, there are no fixed costs, meaning the average total cost curve shifts down.
Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).Recall the Application. In most cases where satellite TV service is introduced in an area with cable TV service, the price of the cable TV service usually:
A. increases. B. decreases. C. initially increases, then decreases. D. is unaffected.