A budget line is the locus of all points representing every input combination of inputs that the producer can afford to buy with a given amount of money and given input prices.
Answer the following statement true (T) or false (F)
True
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When your textbook authors say competition "can be recognized only in motion pictures, not in still photographs," they mean
A) Hollywood is a competitive industry; portrait photography is non-competitive. B) competition is better described as a process, rather than a fixed state of affairs. C) competitors don't sit still. D) competition didn't exist before the advent of motion picture technology.
Tele-Com, Inc., the nation’s largest cable TV company, tested the effect of a price reduction for the Disney Channel. It lowered prices from $10.75 to $7.95 and found that the number of customers more than doubled. This means the
A. demand curve for the Disney Channel shifted to the right. B. supply curve of the Disney Channel shifted to the left. C. demand for the Disney Channel is elastic in this price range. D. demand for the Disney Channel is inelastic in this price range.
Harmonization of standards refers to
A) the elimination of tariffs and quotas by trading partners. B) common product safety, environment, labor, and fair competition standards agreed upon by trading partners. C) the acceptance or keeping of a trading partner's standards as valid and sufficient by another trading partner. D) separate standards held by different trading partners which other partners refuse to recognize. E) All of the above.
Trade between countries should be
A) encouraged for developed countries but not for developing countries. B) encouraged for both developed and developing countries. C) discouraged for developed countries but encouraged for developing countries. D) discouraged for both developed and developing countries.