In equilibrium which of the following happens if the U.S. imposes tariffs on power tools?
a. U.S. net exports rise
b. the exchange rate falls
c. U.S. production of power tools rises
d. All of the above are correct.
c
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When the demand for electricity peaks during the hottest days of summer, Florida Power and Light Company can generate more electricity by using more fuel and increasing the working hours of many of its employees
The company cannot, however, increase electric power production by building additional generating capacity. This means that the company is in the A) market run. B) short run. C) intermediate run. D) long run.
Many tout that the Internet has lowered consumers' search costs. If this is true, ceteris parabis, the consumer reservation price should:
A. remain the same. B. be higher. C. be lower. D. There is insufficient information to determine the impact of lower search costs on reservation prices.