Which of the following is an example of an international externality?
a. Ensuring biodiversity
b. Promoting ecotourism
c. Mandating recycling
d. Implementing pollution taxes
a. Ensuring biodiversity
Biodiversity is an example of an international externality.
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Which of the following is an advantage of the U.S. government investing in R&D?
a. New industries and jobs are potentially created. b. Tax rates for corporations are typically reduced. c. The sources public goods are closely monitored. d. The number of free riders is sharply reduced.
A problem with using the judgment by performance criterion is that:
A. the court must decide whether to use concentration ratios or the Herfindahl index. B. it is difficult to determine the relevant market. C. each action of a firm must be analyzed separately and within a particular context. D. it is difficult to determine the relevant industry.
Under free trade, a large country produces one million leather bags per year and imports another two million bags per year at the world price of $60 per bag. Assume the country imposes a specific tariff of $5 per bag. As a result, the per-unit price of leather bags decreases to $58 in the international market and the import of leather bags drops to 1.6 million. The domestic production, on the other hand, increases to 1.1 million. Following the imposition of the tariff, the domestic consumers pay a price of ________ for each bag.
A. $65 B. $63 C. $60 D. $58
The development of new technology typically:
a. shifts the supply curve to the right. b. reduces profits. c. results in a downward movement along a supply curve. d. increases costs of production. e. shifts the demand curve to the right.