If the United States threatens to impose a tariff on Colombian coffee if Colombia does not remove agricultural subsidies, the United States will be
a. better off regardless of how Colombia responds.
b. better off if Colombia removes the subsidies, and will be no worse off if it doesn't.
c. worse off if Colombia doesn't remove the subsidies in response to the threat.
d. worse off regardless of how Colombia responds.
c
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An import quota taxes an import but does not set a limit on how much may be imported
a. True b. False
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
Allocative efficiency is achieved when the production of a good occurs where:
A. P = minimum ATC. B. P = MC. C. P = minimum AVC. D. total revenue is equal to TFC.
Barriers to entry are forces that:
A. promote a more efficient allocation of resources across the economy. B. limit the government from intervening in markets. C. limit consumers from purchasing new products. D. limit new firms from joining an industry.