If a nation imposes a tariff on an imported product, then that nation will experience a(n)
A. decrease in the supply of, and an increase in the quantity demanded of, the product.
B. increase in the quantity supplied of, and a decrease in the price of the product.
C. decrease in demand and a decrease in the price of the product.
D. decrease in quantity supplied and an increase in the price of the product.
Answer: D
You might also like to view...
The low point of economic activity during a business cycle is called the
A) trough. B) recession. C) peak. D) failure.
Early settlers in the town of Dry Gulch drilled wells to pump as much water as they wanted from the single aquifer beneath the town. (An aquifer is an underground body of water.) As more people settled in Dry Gulch, the aquifer level fell and new wells had to be drilled deeper at higher cost. The residents of Dry Gulch will overuse water relative to the social optimum because ________.
A. each resident will fail to adequately consider the external benefit of his or her own water use B. the marginal cost of water is increasing C. each resident will fail to adequately consider the external cost of his or her own water use D. water is a scarce resource
Which of the following functions of government gives property owners the incentive to use their property efficiently?
A. making sure that courts are lenient on people who steal private property B. the enforcement of antitrust legislation C. the protection of property rights D. the financing of public goods
Use a graph to show the effects of a contractionary monetary policy to reduce inflation and move an economy back to potential real GDP. Explain what happens to aggregate demand, real GDP, and the price level
What will be an ideal response?