Trade restrictions that limit the sale of low-price foreign goods in the U.S. market
a. increase the real income of Americans.
b. benefit domestic producers in the protected industries at the expense of consumers and domestic producers in export industries.
c. help channel more of our resources into producing goods for which we are a low-cost producer.
d. reduce unemployment and increase the productivity of American workers.
B
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In a market economy, ________ interact in markets to decide the answers to the fundamental economic questions
A) the judicial and legislative branches of the federal government B) large corporations C) households and firms D) state and local governments
In the United States, the bulk of health care spending is paid by health insurance companies
Such a system is also called a third-party payer system where consumers of health care pay a nominal fee and the rest are paid by the health insurance provider. Why might such a system lead to an inefficient outcome? A) Consumers fearing that excessive use of health care services may lead to a rise in insurance premiums tend to under-consume health care services. B) Health insurance companies have an incentive to control cost and therefore tend to deny consumers many cutting edge medical treatments. C) Consumers have an incentive to over-consume health care services because they pay prices well below the cost of providing these services. D) Physicians concerned that insurance companies may not approve payments tend not to order expensive tests for their patients.
If the price elasticity of demand is -0.8 and the firm increases price, revenue will
a. Increase b. Decrease c. Stay constant d. become zero, they would lose all their customers
Given a linear demand function of the form QXd = 500 - 2PX - 3PY + 0.01M, find the inverse linear demand function assuming M = 20,000 and PY = 10.
A. PX = 500 - 2QX - 3PY + 0.01M. B. PX = 335 - 0.5QX. C. PX = 500 - 2QX. D. PX = 335 - 2QX.