A tax on an imported good is called
a. a subsidy
b. dumping
c. a quota
d. a tariff
e. restricted trade
D
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A Giffen good has
A) a positive substitution effect. B) a negative income effect. C) a larger income effect than substitution effect. D) All of the above.
Under competitive conditions, the relative price of a finite resource would be expected to:
a. rise at an increasing rate. b. rise at a rate equal to the real interest rate. c. rise at a rate equal to the nominal interest rate. d. rise at a rate determined by demand conditions.
Because trade raises the amount that an economy can produce by letting firms and workers play to their comparative advantage, trade will also cause
a. the average level of wages in an economy to fall. b. the average level of wages in an economy to rise. c. the average number of jobs in an economy to rise. d. the average number of jobs in an economy to fall.
In a self-regulating economy, wages will fall and prices will rise when there is an inflationary gap
Indicate whether the statement is true or false