Which of the following observations is true of subsidies?
a. They act as barriers to trade
b. They reduce the amounts of actual labor, raw material, and capital costs of production.
c. They are capable of distorting trade patterns.
d. They reduce inefficiencies.
c
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If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is a decrease in real money supply:
a. The real risk-free interest rate rises and the quantity per time period falls. b. The real risk-free interest rate rises and the quantity per time period rises. c. The real risk-free interest rate rises and the quantity per time period does not change. d. The real risk-free interest rate is uncertain and the quantity per time period is uncertain. e. The real risk-free interest rate falls and the quantity per time period falls.
If Janella increases her supply of labor by 6 percent in response to a 5 percent increase in the wage rate, her elasticity of labor supply must be
A. 5.0. B. 1.2. C. 6.0. D. 0.83.