A. Spain
B. Germany
C. France
D. Iceland
Economics Mcqs
Monopolistic competition differs from perfect competition primarily because ?
A. in monopolistic competition entry into the industry is blocked
B. in monopolistic competition there are relatively few barriers to entry.
C. in monopolistic competition, firms can differentiate their products
D. in perfect competition firms can differentiate their products
Which factor of production in the United States is most likely to be made worse off (its factor payment will decrease) because of the North American Free Trade Agreement ?
A. Capital
B. land
C. skilled labor
D. unskilled labor
A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?
A. marginal costs
B. fixed costs
C. variable costs
D. advertising costs
The Common Agricultural Policy of the European Union has ?
A. increase American farm exports to the EU
B. decrease American farm exports to the EU
C. lowered the price of American farm exports to the EU
D. not affected the price of American farm exports to the EU
The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?
A. the efficient output level will be produced in the long run
B. firms will only earn a normal profit
C. firms realize all economies of scale
D. firms will be producing at minimum average cost
When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na ?
A. free trade area
B. customs union
C. common market
D. economic union
Under the Common Agricultural Policy exports of any surplus quantities EU produce are encouraged through the usage of ?
A. variable levies
B. export subsidies
C. trigger prices
D. countertrade
When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?
A. monopolistically competitive
B. oligopolistic
C. perfectly competitive
D. indeterminate from this information
In free trade A will import ?
A. 700 units from country C
B. 700 units from country C and 600 units from country B
C. 600 units from country C
D. 600 units from country C and 400 units from country B