Suppose that the United States decided to subsidize a major research and development effort by U.S. firms in the semiconductor industry. Under the current rules of the WTO and GATT, the U.S. effort is
A) allowed as long as the subsidies are a small percent of the total cost.
B) allowed as long as the subsidies do not involve a direct payment to the industry.
C) not allowed.
D) neither allowed nor disallowed.
E) allowed as long as the subsidies are for developing a "precompetitive" technology.
E
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Which of the following things does not have an objective cost?
A) Platinum B) Water C) Ski lift tickets D) Medical equipment E) None of the above has an objective cost.
According to the above figure, if the government imposes a minimum wage equal to Wm, the effect will be
A) a reduction in employment from Qe to Qm. B) an increase in employment from Qe to Qm. C) a decrease in labor supplied, from C to E. D) an increase in labor supplied, from A to E.
The prisoner's dilemma game can be used to describe
A. how individuals acting in their self-interest leads to the best outcome overall. B. why candidates in elections go negative. C. a zero sum game. D. the game Rock Paper Scissors
If a firm experiences decreases in the per-unit costs of production as its network increases, then this firm is experiencing
A) economies of scope. B) economies of scale. C) network externalities. D) differentiation.