A nation can gain from imposing a tariff on imports if it forces exporting countries
a. to raise their prices to pay the tariff.
b. to lower their prices to avoid stocks of unsold goods.
c. to produce at diseconomies of scale.
d. to accept some imports from the tariff-imposing nation.
b
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If consumers are identical, then
A) price discrimination is impossible. B) price discrimination can occur if each consumer has a downward-sloping demand curve for the product. C) perfect price discrimination is the only form of price discrimination that can increase a monopoly's profit. D) tie-in sales cannot increase a monopoly's profit.
The merchandise trade balance measures
a. the value of goods and services exported b. the value of all goods and services exported minus the value of all goods and services imported c. the value of all goods and services exported minus the value of all goods and services imported, and transactions to finance the difference d. the value of all tangible products exported minus the value of all tangible products imported e. the value of all tangible products exported minus the value of all tangible products imported, and transactions to finance the difference
Suppose there is an improvement in the technology of producing TVs and the production of TVs becomes an increasingly competitive industry. Assuming that the TV industry is initially in equilibrium, the long-run effect of this improvement is:
A. higher TV prices and greater TV production. B. lower TV prices and lower TV production. C. lower TV prices and greater TV production. D. higher TV prices and lower TV production.
Economic profit is defined as the difference between revenue and ____
a. explicit cost b. total economic cost c. implicit cost d. shareholder wealth e. none of the above