Denmark is an importer of computer chips, taking the world price of $12 per chip as given. Suppose Denmark imposes a $5 tariff on chips. Which of the following outcomes is possible?
a. More Danish-produced chips are sold in Denmark.
b. More foreign-produced chips are sold in Denmark.
c. Danish consumers of chips become better off.
d. Total surplus in the Danish chip market increases.
a
You might also like to view...
India's rapid growth can be explained by
A) reduced regulations and market-based reforms. B) an increase in labor force participation. C) investment in human capital from 1947 through 2015. D) the movement of workers from the agricultural sector to the manufacturing sector.
Deflation:
a. was prevalent during the oil shocks of the 1970s. b. will cause consumers' purchasing power to shrink. c. has been persistent in the U.S. economy since the Great Depression. d. none of these.
If the Congress passes legislation to decrease government spending to control demand-pull inflation, then this would be an example of a(n):
a. Nondiscretionary fiscal policy b. Automatic stabilizers c. Contractionary fiscal policy d. Expansionary fiscal policy
The possession of monopoly power and the willful acquisition of that power is
A) defined in the Sherman Antitrust Act as monopolization. B) defined by the Supreme Court as monopolization. C) not defined as monopolization until a statement about profits is included. D) not the definition of monopolization.