A tariff imposed on imported shoes will cause the domestic price of shoes to ________ and the domestic production of shoes to ________.
A. increase; decrease
B. decrease; decrease
C. increase; increase
D. decrease; increase
Answer: C
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An increase in the price of a firm's product
A) decreases its value of marginal product of labor. B) increases its demand for labor. C) increases its supply of labor. D) None of the above answers is correct.
Suppose Orange Inc sells MP3 players and initially has monopoly power because there are only a few close substitutes available to consumers
As more types of MP3 players are introduced into the market, the demand facing Orange becomes ________ elastic and the Lerner index achieved by the firm in this market ________. A) less, declines B) less, increases C) more, declines D) more, increases
Profit is maximized at the rate of output where marginal revenue exceeds marginal cost by the greatest amount
Indicate whether the statement is true or false
Which of the following is true?
A) Reserves = required reserves - excess reserves. B) Reserves - required reserves = excess reserves. C) Reserves = required reserves + excess reserves. D) b and c E) a and b