The equilibrium price under an import quota is below the price that occurs with free trade.
Answer the following statement true (T) or false (F)
False
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Assume that you are the owner of a small bakery in your home town. Which of the following would be a variable cost of production in the short run?
A. Baking ovens B. The interest on business loans C. Baking supplies (flour, salt, etc.) D. The annual lease payment for use of the building
As Mary's income increases by 20 percent, her demand for tickets to National Hockey League games increases by 10 percent. Mary's demand for tickets is income ________; for Mary, hockey tickets are ________ good
A) elastic; a normal B) inelastic; a normal C) elastic; an inferior D) inelastic; an inferior
According to economic theory, consumers should support taxes on the producer, and producers should support taxes on the consumer.
a. true b. false
If the expected uncovered interest differential is ________, then the expected overall return favors uncovered investing in the foreign-denominated currency.
A. unchanged B. positive C. negative D. zero