The contract curve:
A. shows the unique Pareto efficient allocation of a pair of goods in an Edgeworth box.
B. shows every inefficient allocation of consumption goods in an Edgeworth box.
C. passes through the tangencies between pairs of indifference curves in an Edgeworth box.
D. passes through every intersection between pairs of indifference curves in an Edgeworth box.
C. passes through the tangencies between pairs of indifference curves in an Edgeworth box.
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When a tariff supporter argues that foreign producers are selling their products for prices below the costs of production, which of the following is being used?
A) Save domestic jobs argument B) National security argument C) Dumping argument D) Infant-industry argument E) Diversity and stability argument
Which one of the following is not an accurate description of the activities in which labor unions engage?
A) Control competition among workers for jobs. B) Encourage consumers to purchase union-made products exclusively. C) Enforce seniority criteria when employers are contemplating layoffs. D) Help workers compete against corporate employers. E) Protect workers against arbitrary treatment by management.
A patent on a product gives a firm
A) protection from having the invention copied or stolen for a period of 20 years. B) economies of scale in producing the product. C) excessive profits in the long run. D) the power to impose a tariff on a competing product.
Banks have more expertise than individual households in making loans because banks: a. lend smaller amounts of money
b. are regulated by the government. c. also pay interest to savers. d. are subject to severe penalties if they make bad loans. e. make many more loans than individual households do.