A nation can gain from imposing a tariff on imports if it forces exporting countries
A. to raise their prices to pay the tariff.
B. to lower their prices to avoid stocks of unsold goods.
C. to produce at diseconomies of scale.
D. to accept some imports from the tariff-imposing nation.
Answer: B
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The mutual interdependence of oligopolists ensures that each oligopolist has
A) a unique demand curve. B) a perfectly elastic demand curve. C) a reaction function. D) a fundamental dilemma about whether to collude or not.
Perfect competition
A) has many sellers. B) homogenous products. C) free entry and exit. D) all of these choices.
Nick Lewis is a strict vegetarian and dislikes the sight and smell of meat products. He buys a raffle supporting the Josh Gottheil Memorial Fund for Lymphoma Research and wins the 3rd prize: a year's supply of hamburger meat. He is willing to trade with his meat-loving friends, and a trade ensues. This is because the
a. marginal utility of meat for them is positive and for Nick, it's negative b. total utility of meat for them and for Nick is positive c. MU/P of the goods his friends trade away is higher than their MU/P of meat d. MU/P of meat for Nick is higher than the MU/P of the goods he gets for the meat e. his friends have a negative total utility of meat, but wish to help Nick
When economists use the term ceteris paribus, they are indicating that
a. the relationship between two economic variables cannot be determined. b. the analysis is true for the individual but not for the economy as a whole. c. all other variables except the ones specified are assumed to be constant. d. their conclusions are based on normative economics rather than positive economic analysis.