Which of the following situations will arise in the domestic market following the imposition of a voluntary export restraint?
A) imports increase, domestic production increases, prices increase
B) imports decrease, domestic production increases, prices increase
C) imports decrease, domestic production increases, prices decrease
D) imports increase, domestic production decreases, prices decrease
B
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If external benefits are taken into account in the market
A) the demand curve would shift to the left. B) the supply curve would shift to the left. C) the demand curve would shift to the right. D) the supply curve would become vertical.
Monopolistic competitors are
a. price takers b. price searchers c. price maximizers d. price ignorers e. collusive price fixers
The proponents of rational expectations believe that
a. there will be a substantial time lag before people anticipate the eventual effects of a shift to a more expansionary macro-policy. b. macro-policies that stimulate demand and place upward pressure on the general level of prices will temporarily increase output and employment. c. the inflationary side effects of expansionary policies will be anticipated quickly, and therefore, even their short-run effects on real output and employment will be minimal. d. discretionary changes in macro-policy can be made in a manner that will reduce the economic ups and downs of a market economy.
In economics, choices are necessary because of the presence of
A. luxuries. B. inefficiency. C. needs. D. scarcity. E. incentives.