Which of the following is NOT a potential problem of using export controls?
A) There is an incentive for other countries to develop production of their own.
B) Domestic producers may have less incentive to increase output.
C) Prices go up in the country imposing the controls.
D) There is more incentive for smuggling.
C) Prices go up in the country imposing the controls.
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Reducing direct costs will
A) increase economic profit. B) decrease economic profit. C) leave economic profit unchanged. D) may or may not affect economic profit.
What does Says’ law state?
a. Supply creates its own demand. b. Demand creates its own supply. c. Supply and demand always intersect. d. Government determines supply and demand.
The Federal Reserve System is controlled by the
a. U.S. Department of the Treasury. b. House of Representatives and the Senate. c. Board of Governors. d. President of the United States.
Economists at the U.S. Department of Justice help enforce the nation's antitrust laws
a. True b. False Indicate whether the statement is true or false