A tariff imposed on imported shoes will cause the domestic price of shoes to ________ and the domestic production of shoes to ________.
A. decrease; decrease
B. decrease; increase
C. increase; decrease
D. increase; increase
Answer: D
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The funds that polluters pay that gives them the right to discharge into the air or water a certain amount of pollution are
A) special subsidies. B) regulation fees. C) external costs. D) effluent fees.
In many high-tech industries in the economy, such as computers, medical equipment, and automobiles,
A. price competition is utilized by firms more than innovation to compete with rivals. B. firms compete on the basis of innovation only; never engaging in price competition. C. innovation is utilized by firms to compete with rivals more than price competition. D. firms use price competition only; never engaging in innovation to compete with rivals. E. firms utilize innovation and price competition equally to compete with rivals.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
The U.S. antitrust enforcers determine whether a merger violates antitrust laws by examining
A) both the resulting change in the HHI and the level of post-merger HHI. B) only the resulting change in the HHI but not the level of HHI after the merger. C) both the size of the market after the merger and the profits of the mergers. D) whether the mergers are monopolies before they merge.