Using tariffs to support diversification of a nation’s industrial structure
a. has little application to developing countries.
b. is based on the need to protect high domestic wages.
c. is based on the need to make the economy less vulnerable to demand fluctuations for its products.
d. is designed to encourage specialization by the nation’s producers in just one or a few goods.
c. is based on the need to make the economy less vulnerable to demand fluctuations for its products.
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An increase in the interest rate in the United States compared to the interest rate in Great Britain will
A) increase the U.S. interest rate differential. B) increase the demand for pounds. C) shift the demand curve for dollars rightward. D) Both answers A and C are correct.
Vertical relationships can increase profits through
a. preventing firms from evading regulation b. creating a double-markup problem c. making the incentives of manufacturers and retailers unaligned d. facilitating price discrimination
We have had a downward trend in the unemployment rate since the 1980's until the increase occurring in
A. 1991. B. 2001. C. 2007. D. 2009.
Allocative inefficiency happens in a monopoly because at the profit-maximizing output level:
A. P > ATC B. P > MR C. P > MC D. P > AVC