A. no longer influences the amount demand of the firm’s product
B. becomes a decision variable for the firm
C. is guaranteed to be above a firm’s average cost.
D. is determined by the actions of other firms in the industry
Economics Mcqs
If A imposes a per unit tariff of $10 on imports from both B and C A will import ?
A. 400 units from B
B. 200 units from C
C. 200 units from each
D. 400 units from B and 200 units from C
The cosmetics industry is not considered by economists to be a good example of perfect competition because ?
A. there are many EU and government health controls on cosmetic products
B. there are a very large number of firms in the industry
C. firms spend a large amount of money on advertising
D. profit margins are very high for both producers and retailers
If A forms a customs union with C, the value of trade diversion will be ?
A. $0
B. $10,000
C. $20,000
D. $40,000
If firms can neither enter nor leaves an industry, the relevant time period is the ?
A. immediate run
B. intermediate run
C. long run
D. short run
…….. is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries ?
A. trade creation
B. trade diversion
C. trade exclusion
D. trade distortion
……… is said to exist when the formation of a regional trading group leads to an expansion of trade above pregroup levels ?
A. trade creation
B. trade diversion
C. trade exclusion
D. trade distortion
A normal rate of profit ?
A. Is the rate of return on investments over the interest rate on risk-free government bonds.
B. is the rate that is just sufficient to keep owners or investors satisfied.
C. is the difference between total revenue and total costs
D. is zero in a perfectly competitive industry.
A positive, dynamic effect of economic integration is illustrated by ?
A. trade diversion effect
B. increased monopoly power of firms
C. decrease customs costs
D. economy-of-scale effect
Economic profits are ?
A. the difference between total revenue and total costs.
B. anything greater than the normal opportunity cost of investing
C. the opportunity costs of all inputs
D. a rate of profit that is just sufficient to keep owners and investors satisfied