If a small country were to levy a tariff on its imports then this would
A) decrease the country's economic welfare.
B) have no effect on that country's economic welfare.
C) increase the country's economic welfare.
D) change the terms of trade.
E) raise prices on its exports in other countries.
A
You might also like to view...
Macroeconomic forecasting is made more difficult due to the fact that
A) deviations from trend in real GDP are persistent. B) turning points are hard to predict. C) there is no regularity in comovements. D) consumption is smooth.
If Mario's Pizza, a large frozen pizza distributor, builds a tomato sauce plant near Red Tomatoes, a large tomato farm, to reduce the costs of transporting fresh tomatoes, ________ potentially faces a hold-up problem as the firm invested in a ________.
A) Mario's Pizza; transaction-specific asset B) Red Tomatoes; negotiation asset C) Red Tomatoes; transaction-specific asset D) Mario's Pizza; negotiation asset
Consider a consumer choosing between spending her money on food, F, or clothing, C. Assume that a unit of food and a unit of clothing have the same price, and that the consumer can afford a total of 20 units of either food or clothing. If B stands for benefits then "B(F) + B(C)" is the:
A. constraint. B. objective function. C. optimization problem. D. sunk cost.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point A to Point B, ________ additional OLED TVs could be produced when the production of LCD TVs is reduced by 30.
A. exactly 20 B. more than 20 C. fewer than 20 D. exactly 90