A tariff is imposed on a good. The tariff will ________ the domestic quantity supplied, ________ the domestic quantity demanded, and ________ price in the home country
A) increase; decrease; increase
B) increase; remain unchanged; remain unchanged
C) increase; increase; increase
D) increase; decrease; decrease
A
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In the food and kindred products industry, it is estimated that the elasticity of output with respect to labor is 0.43 and the elasticity of output with respect to capital is 0.48
These two measures indicate that the primary metals industry is characterized by A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) no returns to scale.
Commodity-backed money is:
A. any form of money that can be legally exchanged into a fixed amount of an underlying commodity. B. money created by rule. C. money used for the exchange of large commodities. D. any form of money that also has a role as a commodity. AACSB: Reflective Thinking
Adam Smith's insight was that prices adjust to guide individual buyers and sellers to reach outcomes where, in many cases,
a. opportunity cost is minimized for buyers. b. scarcity is reduced for society. c. well-being of society is maximized. d. opportunity cost of production is maximized.
For a profit-maximizing monopolistically competitive firm, marginal revenue exceeds marginal cost in
a. the short run but not in the long run. b. the long run but not in the short run. c. both the short run and the long run. d. neither the short run nor the long run.