When can a country gain a price advantage on imports by imposing a tariff?
A. When it is the largest country with absolute advantage in all goods
B. When it has a comparative advantage in the production of all goods
C. When it can do so without other countries retaliating with tariffs
D. When trade agreements prohibit quotas but permit tariffs
Answer: C
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Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, the consumer's burden of the tax
A) is Pa - Pc under either supply curve. B) is Pa - Pd if the supply curve is S0 and Pb - Pe if the supply curve is S1. C) is Pa - Pc if the supply curve is S0 and Pb - Pc if the supply curve is S1. D) is Pb - Pc under either supply curve.
According to New Keynesians, why can firms increase output in the short run in response to higher prices?
What will be an ideal response?
Large oligopoly firms are often able to take advantage of significant economies of scale. As a result, they can often produce at a lower average total cost than can smaller firms
a. True b. False Indicate whether the statement is true or false
A bus is mostly filled with passengers and ready to travel from Los Angeles to San Francisco. At the last minute, a person comes running up to the bus and takes a seat. The change in the bus company's total cost as a result of transporting one more passenger on this trip is called
a. marginal cost b. average total cost c. variable cost d. fixed cost e. opportunity cost