Which of the following is true?
i. When the world price of a good is lower than the price that balances domestic supply and demand, a country gains from exporting the good.
ii. Compared to a no-trade situation, in a market with imports, consumer surplus is larger.
iii. Quotas raise the domestic price of imported goods.
A) only i
B) only ii
C) only iii
D) i and ii
E) ii and iii
E
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The cost-output elasticity is used to measure:
A) economies of scope. B) economies of scale. C) the curvature in the fixed cost curve. D) steepness of the production function.
What interest rate does the Fed charge when it makes loans to banks?
a. the prime rate b. the U.S. Treasury Bond rate c. the discount rate d. the federal funds rate e. the U.S. Treasury Bill rate
Refer to the information provided in Figure 4.5 below to answer the question(s) that follow.
Figure 4.5Refer to Figure 4.5. Assume that initially there is free trade. If the United States then imposes a $10.00 tariff per CD-Rom drive on imported CD-Rom drives,
A. U.S. imports of CD-Rom drives will increase by 3 million. B. the quantity of CD-Rom drives supplied by U.S. firms will increase by 3 million. C. the price of CD-Rom drives in the United States will decrease to $5. D. the quantity of CD-Rom drives demanded will be reduced by 6 million.
An increase in dividend payments will
A. lead to a decrease in labor supply. B. either lead to an increase or decrease in labor supply depending on the relative magnitude of the income and substitution effects. C. have no effect on labor supply. D. lead to an increase in labor supply.