The gravity equation is used to predict:
a. the level of bilateral trade.
b. the level of intra-industry trade.
c. the weight of exports plus imports.
d. the level of inter-industry trade.
Ans: a. the level of bilateral trade.
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If the government imposes a price ceiling, then:
a. producers must charge the ceiling price. b. the price offered by producers must be at or above the ceiling price. c. the price offered by producers must be at or below the ceiling price. d. producers would be inclined to increase the quantity supplied. e. the market supply curve will shift to the right.
Suppose a firm's total revenue is $100 when it sells 10 units, and $110 when it sells 11 units. The firm, therefore, is a(n):
A. oligopolist. B. perfect competitor. C. pure monopolist. D. monopolistic competitor.