An import quota:

A. limits the amount of a good that can be imported, thus decreasing prices.
B. limits the amount of a good that can be imported, thus increasing prices.
C. increases the amount of a good imported, thus decreasing prices.
D. increases the amount of a good imported, thus increasing prices.


Answer: B

Economics

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A) an agreement with a competitor firm to adjust output levels B) an exclusive dealings contract with a customer C) an agreement with a customer about the resale price the customer will charge for the product D) a tying sale with a customer

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The difference between moral hazard and adverse selection is that moral hazard is about:

A. unobserved characteristics of people occurring before parties enter into an agreement. B. never happens when adverse selection is a problem. C. actions that arise after the parties enter an agreement D. None of these statements is true.

Economics

Because a competitive firm is a price taker, it faces a demand curve that is:

a. perfectly inelastic. b. relatively inelastic. c. relatively elastic. d. perfectly elastic.

Economics

Which of the following is true when long-run equilibrium conditions are present in price-taker and competitive price-searcher markets?

a. MR = ATC in both price-taker and competitive price-searcher markets. b. P = ATC in price-taker markets; P = MC in competitive price-searcher markets. c. P = MC in both price-taker and competitive price-searcher markets. d. P = ATC in both price-taker and competitive price-searcher markets.

Economics