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 economy's factors of production are not equally suitable for producing different types of goods. This principle generates:
A) economic growth. B) technical efficiency. C) resource underutilization. D) the law of increasing opportunity cost.
When a firm experiences declining long-run average total costs as it produces more output, it is known as a(n)
A. natural monopoly. B. rent seeker. C. monopolistic competitor. D. oligopoly.
In the market for a pair of shoes, Jena is willing to pay $75 for a pair while Jane is willing to pay $85 for a pair. The actual price that each must pay for a pair of shoes is $65. What is the combined amount of consumer surplus of Jena and Jane?
A. $10 B. $20 C. $30 D. $160
NAFTA was a controversial issue in the 2008 presidential campaign, particularly in the Democratic primaries
Indicate whether the statement is true or false