Which of the following is NOT a reason that free trade stimulates economic growth?

Which of the following is NOT a reason that free trade stimulates economic growth?
 
  A) Free trade encourages a more rapid spread of technology.
  B) Industries have larger markets.
  C) The importation of technically advanced products enables the country to imitate the technology.
  D) Free trade keeps domestic prices up, enabling firms to make more profits that can be spent on research and development.

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Ques. 2

A price index shows
 
  A) the current cost of a basket of goods.
  B) the relative price of necessities.
  C) the price of goods in the future.
  D) the cost of today's goods expressed in terms of the cost of goods in a base year.

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Ques. 3

In the above figure, when this monopolistically competitive firm produces its profit-maximizing output, it sets a per-unit price of
 
  A) 13.
  B) 11.
  C) 10.
  D) 8.

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Ques. 4

Under rate-of-return regulation, average cost pricing
 
  A) is inflated so the firm can make economic profits.
  B) includes variable costs but not a cost for capital.
  C) includes what they consider to be a fair rate of return on investment.
  D) includes a cost for capital that generates an above normal rate of return.

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Ques. 5

Suppose a firm can charge a relatively low price to try to compete actively with its rivals, or it can charge a relatively high, collusive price.
 
  If its strategy is to charge the low price regardless of the other firms' decisions, this low-price is the firm's A) dependent strategy.
  B) independent strategy.
  C) dominant strategy.
  D) positive sum strategy.

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Ques. 6

Given a linear curve, the value on the y-axis changes from 100 to 120 when the value on the x-axis changes from 20 to 10, then the slope of that curve is
 
  A) -20.
  B) +20.
  C) -2.
  D) +2.

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Ques. 7

Which of the following statements is consistent with a decrease in supply?
 
  A) Prices of raw material inputs have increased.
  B) There has been an advance in technology.
  C) Consumers' incomes have increased.
  D) The market price has decreased.

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Ques. 8

Generally, specialization leads to
 
  A) constant opportunity costs.
  B) greater productivity.
  C) the production of fewer capital goods.
  D) greater self-reliance.