Which of the following is the best example of a voluntary export restraint?
A) a limit imposed by the U.S. government on the number of cell phones that the United States can import from Korea
B) a subsidy granted by the U.S. government to domestic cell phone manufacturers so they can compete more effectively with foreign cell phone manufacturers
C) a limit set by the Korean government on the number of cell phones that the United States can import from Korea.
D) a $50 per-cell phone fee imposed on all cell phones imported into the United States
Answer: C
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With regard to indentured servitude,
(a) indentured servants were typically slaves. (b) this institutional arrangement benefited all parties entering the contract. (c) this institutional arrangement restricted the supply of labor for the colonies. (d) all of the above answers are correct.
Consider the above figure, which displays the situation faced by a union employed by a firm with the labor demand curve D
This union has total membership of Q3 workers, but its single wage setting goal is to maximize wages for the Q1 members with the most seniority. If the union managers accomplish this goal, what occurs? A) All of the union members will be employed at the wage rate W3. B) All of the union members will be employed at the wage rate W1. C) The senior members of the union will receive a wage equal to W3, but Q3 union members will be unemployed. D) The select group of senior union members will have work and receive a wage of W3, but Q3 -Q1 union members will not be employed by the firm.
A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated. The group claims that this means that economic growth will eventually stop, and will even be reversed. An economist would
a. agree with the report, and would point to rising natural resource prices as evidence. b. agree with the report, but wouldn't think it was important because growth will not slow down for several centuries. c. disagree with the report, in part because it ignores the mitigating effects of technological change. d. disagree with the report because labor and capital are the primary determinants of growth, and since they are plentiful, growth will not slow down.
Refer to the graph above. Over the $5-$6 range, the elasticity of supply using the midpoints formula is:
A. 0.88. B. 1.22. C. 1.00. D. 0.22.