The above figure shows the market for rice in Japan where price is expressed in dollars. S represents the domestic supply curve, and the horizontal line at P = 1 represents the world supply curve. Suppose a free market exists
If a $1 per unit tariff is imposed on imported rice, the quantity of imported rice will decrease by A) Q1 units.
B) Q2 - Q1 units.
C) Q2 units.
D) Q1 - Q2 units.
B
You might also like to view...
One should expect the forward exchange market to flourish
A) under a fixed exchange rate regime. B) under a flexible exchange rate regime. C) under neither fixed nor flexible exchange rate regimes. D) under both fixed and flexible exchange rate regimes. E) only under a gold standard.
Explicit costs include:
A. out-of-pocket costs. B. fixed costs. C. variable costs. D. All of these are included in explicit costs.
The worst remedy for curing the U.S. trade deficit is to
A. increase U.S. personal saving. B. reduce the budget deficit. C. encourage all nations to lower trade barriers. D. limit imports by imposing tariffs, quotas, and other trade restrictions.
The impact of monetary policy on prices and output depends on the
A. regulations passed by Congress. B. cooperation from business leaders. C. slope of the aggregate demand curve. D. slope of the aggregate supply curve.