A quota is one example of a protectionist policy.
a. true
b. false
Answer: b. false
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A monopolist, unlike a perfect competitor, has total control in its market because it is the single producer. Why, then, must a single-price monopolist decrease its price if it wants to increase its output?
What will be an ideal response?
A price discriminating monopolist will
A) charge a lower price to those consumers who have more elastic demand. B) charge a higher price to those consumers who have more inelastic demand. C) charge more to those consumers who have more substitute goods. D) charge the same price to all consumers.
Which of the following statements best describes the outcome of a shift in the AS curve?
a. If AS shifts out to the left, a combination of lower inflation, higher output, and lower unemployment is possible. b. If AS shifts out to the right, a combination of lower inflation, higher output, and lower unemployment is possible. c. If AS shifts out to the right, a combination of lower inflation, lower output, and higher unemployment is possible. d. If AS shifts out to the left, a combination of lower inflation, lower output, and higher unemployment is possible.
Suppose that the United States does 1/2 of its trade with Canada, 1/4 with the United Kingdom, and 1/4 with Mexico. If the dollar real exchange rate rises by 10°/o with Canada, rises by 20% for the United Kingdom, and falls by 10% for Mexico, what is the percentage change in the real effective exchange rate?
a. 11.5% b. 10% c. 7.5% d. -2.5%