Assume that a country imposes a tariff in order to gain a price advantage on an item. What is the typical response from the exporting country?
A. It accepts the situation and does nothing about it.
B. It seeks greater efficiency in order to offset the tariff.
C. It refuses to sell to the country that imposes the tariff.
D. It retaliates by imposing tariffs or quotas on items from the other country.
Answer: D
You might also like to view...
Often managers require a payment due to their risk aversion. This payment is called
A) a golden parachute. B) greenmail. C) a poison pill. D) rollover compensation
A t-shirt maker would be willing to supply 75 t-shirts per day at a price of $18.00 each. At a price of $20.00, the t-shirt maker would be willing to supply 100 t-shirts. Using the midpoint method, the price elasticity of supply for t-shirts is about
a. 0.37, and supply is elastic. b. 0.37, and supply is inelastic. c. 2.71, and supply is elastic. d. 2.71, and supply is inelastic.
Exhibit 15-1 Production possibilities curves
In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Nabia the cost of producing one more unit of wheat is equal to:
A. 4 units of corn. B. 4 units of wheat. C. 1/4 unit of corn. D. 15 units of corn.
Cross elasticity is higher the more perfect two goods are as substitutes
Indicate whether the statement is true or false