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
You might also like to view...
All of the following actions are potential rule -of-reason violations except which one?
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
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.
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.
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.