Which of the following situations will arise in the domestic market following the removal of an import quota?
A. imports increase, domestic production increases, prices increase
B. imports increase, domestic production decreases, prices decrease
C. imports decrease, domestic production increases, prices decrease
D. imports decrease, domestic production decreases, prices increase
Answer: B
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An upward-sloping supply curve shows that
A. buyers are willing to pay more for a scarce product. B. suppliers are willing to increase production of their goods if they can receive higher prices for them. C. buyers are unaffected by sellers’ costs of production. D. the price of a product is not influenced by the price buyers are willing to pay. E. at higher prices, an envy effect begins to affect the demand curve.
Distinguish between investment goods and consumption goods. If you buy a car, is it investment or consumption? What if IBM buys a car? Are inventories a consumption or investment good?
What will be an ideal response?
A demand schedule is a:
A. table which shows the quantities of a particular good or service that consumers are willing to purchase at various prices. B. graph which shows the quantities of a particular good or service that consumers are willing to purchase at various prices. C. table which shows the quantities of a particular good or service that consumers are willing to purchase at various income levels. D. line which shows the quantities of a particular good or service that consumers are willing to purchase at various prices.
At any given time in the U.S., 16 percent of the population lacks health insurance.
A. True B. False C. Uncertain