Which of the following is a valid counterargument against using tariffs to protect high wages from cheap foreign labor?
A. The benefits of such tariff policy will go to consumers, not workers
B. The benefits of such tariff policy will go to businesses, not workers
C. Wage rates in a nation are largely determined by productivity, not trade tariffs
D. The economy may become overheated, thus increasing inflation
C. Wage rates in a nation are largely determined by productivity, not trade tariffs
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If social regulation causes the supply curve in a market to shift up because of higher marginal costs, then:
a. both consumer and producer surplus will decrease. b. both producer and consumer surplus will increase. c. consumers will gain at the expense of producers. d. producers will gain at the expense of consumers. e. there will be no change in the sum of producer and consumer surplus, although its division may change.
Which of the following is the most important protection against fears of bank collapse?
A. the Federal Reserve B. the Federal Reserve Open Market Committee C. the Federal Deposit Insurance Corporation D. the gold and silver that backs Federal Reserve notes
In the long run, what level of economic profits can a monopolistic competitor expect to receive?
A) positive B) zero C) negative D) either negative or positive, depending on the demand for its product and its costs
Explain how a consumer maximizes utility
What will be an ideal response?