It is assumed that, when capital and labour are the only two inputs, then...

a.

Both capital and labour are fixed in the short run.

b.

Labour is fixed in the short run but capital is not.

c.

Neither capital nor labour are fixed in the short run.

d.

Capital is fixed in the short run but labour is not.

A tax on an imported good is called a...

a.

Voluntary export restraint.

b.

Subsidy.

c.

Quota.

d.

Tariff.

In the long run of a perfectly competitive market, firms make...

a.

Zero economic profits.

b.

Abnormal accounting profits.

c.

Zero accounting profits.

d.

Abnormal economic profits.

A one-litre carton of milk costs $3, but a four-litre carton of milk costs $8. This is _____-degree price discrimination.

a.

Second.

b.

First.

c.

Third.

d.

Fourth.

For a small, open economy, introducing a tariff benefits...

a.

Foreign producers.

b.

Foreign consumers.

c.

Domestic producers.

d.

Domestic consumers.