Compared to free trade, a ban on imports of a good
A) increases the domestic price of the good.
B) decreases consumer surplus.
C) results in a deadweight loss.
D) All of the above.
D
You might also like to view...
Which of the following economic systems requires some form of competition to better coordinate the plans and projects of households and enterprises?
A) capitalism. B) socialism. C) fascism. D) totalitarianism E) all of the above.
If the marginal rate of substitution of butter and margarine is constant, the indifference curve is likely to be _____
a. linear b. concave from below c. L-shaped d. U-shaped
If the slope of a demand curve is constant, then we know that
A) elasticity of demand is also elastic everywhere. B) elasticity of demand is constant and elastic. C) elasticity of demand is inelastic everywhere. D) elasticity of demand varies along the demand curve.
The input-substitution effect associated with an increase in the wage implies that as the wage increases, a firm will substitute other inputs for the relatively expensive labor.
Answer the following statement true (T) or false (F)