Which of the following would be expected if the tariff on foreign-produced shoes were decreased?
A. The domestic price of shoes would fall.
B. The supply of foreign shoes to the domestic market would decline, causing shoe prices to rise.
C. The number of unemployed workers in the domestic shoe industry would decline.
D. The demand for foreign-produced shoes would decrease, causing the price of shoes to increase in other nations.
Answer: A
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The graph illustrates the market for bottled water. If the producers of bottled water switch to using improved technology, then the
A) supply of bottled water decreases. B) quantity demanded of bottled water increases. C) quantity demanded of bottled water does not change. D) price of bottled water rises. E) supply curve shifts leftward.
The figure above shows a monopoly firm's demand curve. If the price and quantity of haircuts move from point t to point r, the monopoly's
A) total revenue will rise. B) total revenue will fall. C) total revenue will remain the same. D) marginal revenue will decrease.
Crowding out refers to the effect that deficits have on private investment spending
a. True b. False Indicate whether the statement is true or false
Consider the following:
(i) The accompanying diagram shows a net borrower. Complete the diagram to show how a net borrower is affected by a rise in the interest rate. Is the net borrower better off or worse off? Does the net amount borrowed increase or decrease? Explain, using substitution and income effects.
(ii) The accompanying diagram shows a net lender. Complete the diagram to show how a net lender is affected by a rise in the interest rate. Is the net lender better off or worse off? Does the net amount lent increase or decrease? Explain, using substitution and income effects.
