Relative to a no-trade situation, if the United States imported jeans, the U.S. domestic price of jeans would
a. rise, but domestic output would fall.
b. decline, but domestic output would rise.
c. decline as would domestic output.
d. rise as would domestic output.
C
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Deadweight costs in an exchange are costs
A) charged for free goods. B) imposed by government, such as taxes or safety requirements. C) that have no effect on either the quantity demanded or the quantity supplied. D) that have nothing to do with the sacrifice of valuable opportunities. E) to the buyer that are not simultaneously benefits to the seller.
A unit tax
A) is based on the value of the good being sold. B) is a constant tax assessed on each unit of a good sold. C) is the primary tax studied in dynamic tax analysis. D) does not influence equilibrium price and quantity.
It's difficult for a private firm to provide a public good because of free riders
a. True b. False Indicate whether the statement is true or false
During a recession, the political incentive structure will encourage politicians to
a. undertake sound economic policies that are consistent with stability and growth. b. adopt any policies, even bad ones, that give the appearance of taking action. c. undertake policies that promote long-term economic growth rather than short-term benefits. d. do nothing and let the recession run its course.