Based on Figure 6.1, given a tariff of $0.25 per bushel on soybean imports, how much will domestic production increase?
A) Domestic firms will increase output by 10 million bushels.
B) Domestic firms will increase output by 20 million bushels.
C) Domestic firms will increase output by 70 million bushels.
D) Domestic firms' production will not be changed by the tariff.
A
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Major categories of market-based instruments include
a. pollution charges d. pollution permit trading systems b. subsidies e. all of the above c. deposit/refund systems
Which of the following can lead to permanent differentials in resource prices?
a. an increase in demand for a product produced by the resource b. differences in the inherent quality of resources c. differences in the time and money involved in developing necessary skills d. differences in the nonmonetary rewards of a job e. a lack of resource mobility
When an economy dips into recession, automatic stabilizers will:
A. enlarge the budget deficit (or reduce the surplus). B. reduce the budget deficit (or increase the surplus). C. ensure that the budget remains in balance. D. expand the supply of money and, thereby, stimulate aggregate demand.
Refer to the market for loanable funds, as shown in the above graph. Suppose the market for loanable funds is originally in equilibrium at interest rate i0 and quantity Q0. In the next period, the equilibrium interest rate increases to i1 and quantity decreases to Q1. Which of the following could be the cause of this shift?
A. Households decide to save less
B. Households decide to save more
C. Investors become less optimistic
D. Investors become more optimistic