If a nation imposes a tariff on imports, the portion of the tax paid by citizens depends upon
A. elasticity of demand.
B. elasticity of supply.
C. how important the good is.
D. income elasticity.
E. cross elasticity of demand with domestic products.
Answer: A
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Your U.S.-based company is selling parts to a company in Bangladesh. If the Bangladeshi company purchases a futures contract
A) the Bangladeshi company bears the exchange rate risk. B) your company bears the exchange rate risk. C) the companies share in the exchange rate risk. D) there is no exchange rate risk.
When the factor market is purely competitive, the firm's average expenditure curve for a factor of production is
A) upward sloping and to the right of the marginal expenditure curve. B) downward sloping and to the right of the marginal expenditure curve. C) identical to the marginal expenditure curve. D) downward sloping and to the left of the marginal expenditure curve.
Suppose studies showed that 12 percent of all teens choose to participate in underage drinking. If policymakers wish to reduce the amount of underage drinking, they should:
A. not share that statistic, and let teens think that it's a huge problem with all teens. B. Informing them will have no impact on their individual behavior. C. let teens know that the great majority of teens currently do not drink. D. The statistic is likely to influence their personal decision, but it is impossible to predict in what way without more information.
A market survey conducted by an electronics manufacturer reported a year on year growth in the sale of television sets, along with an increase in the selling price. Which of the following could be a likely cause for this situation?
a. A decrease in supply b. An increase in demand c. A decrease in demand d. An exception to the law of demand e. An increase in supply