When a tariff is imposed, the gap between the domestic price and the price received in the exporting country is captured by
A) consumers in the importing country.
B) the domestic producers of the good.
C) the government of the importing country.
D) foreign exporters.
E) the domestic importers of the good.
Ans: C) the government of the importing country.
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Analyze the following statement "the global financial crisis of 2008-2009 was a great illustration of how interdependent national economies are."
What will be an ideal response?
If the marginal propensity to consume (MPC) is 4/5, the value of the simple multiplier is: a. 4
b. 1/5. c. 4/5. d. 5/4. e. 5.
If there is no comparative advantage in the production of either of the two goods produced by countries 1 and 2, then
A) the benefits resulting from trade between the two countries are increased. B) there are no gains from specialization and trade between the two countries. C) one country must be more productive in producing all goods than the other. D) each country should specialize in the production of a particular good. E) none of the above
Penalties on sellers and buyers
What will be an ideal response?