Tariffs ________ the domestic price of the good and import quotas ________ the domestic price of the good
A) lower; lower
B) lower; raise
C) raise; lower
D) raise; raise
D
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times If Kyle changes from a pure strategy of "shoot 2" and decides to "shoot 1" in two of the games, Stan would be best off if he
A) stuck with a pure strategy of "shoot 2." B) switched to a pure strategy of "shoot 1." C) stuck with a mixed strategy of "shoot 1" 50% of the time and "shoot 2" 50% of the time. D) switched to a mixed strategy of "shoot 1" more than 50% of the time and "shoot 2" less than 50% of the time.
The law of demand says that the lower the price charged for a good, ceteris paribus, the:
A. greater the quantity demanded per period of time. B. greater the demand for the good per period of time. C. smaller the demand for the good per period of time. D. smaller the quantity demanded per period of time.
Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. From the law of demand we know that ax will be:
A. greater than zero. B. less than zero. C. zero. D. none of the statements associated with this question are correct.
Which of the following is FALSE about a comparison between a perfectly competitive firm and a monopolistically competitive firm?
A) A perfectly competitive firm has a horizontal demand curve, while a monopolistically competitive firm has a downward sloping demand curve. B) In the short run, a perfectly competitive firm will earn zero economic profits, while a monopolistically competitive firm will earn positive economic profits. C) Both the perfectly competitive and monopolistically competitive firm will earn economic profits equal to zero in the long-run. D) In the long run, the perfectly competitive firm will produce at the minimum of the average total cost curve, while the monopolistically competitive firm will produce to the left of the minimum of the average total cost curve.