Refer to the information provided in Figure 4.5 below to answer the question(s) that follow.
Figure 4.5Refer to Figure 4.5. Assume that initially there is free trade. If the United States then imposes a $10.00 tariff per CD-Rom drive on imported CD-Rom drives,
A. the quantity of CD-Rom drives supplied by U.S. firms will increase by 3 million.
B. U.S. imports of CD-Rom drives will increase by 3 million.
C. the quantity of CD-Rom drives demanded will be reduced by 6 million.
D. the price of CD-Rom drives in the United States will decrease to $5.
Answer: A
You might also like to view...
Interest rates spreads between corporate and government bonds ________
A) are procyclical B) have the same characteristics as the government interest rate spreads C) are countercyclical D) all of the above E) none of the above
Funding for canals came from which of the following sources?
(a) Private investments and tolls (b) Taxes (c) Borrowing on government credit (d) All of the above
For more than 20 years, the Fed has used the federal funds rate as its monetary policy target. It has not targeted money supply at the same time because the
A. Fed does not have the authority to control both targets B. Fed cannot target both at the same time: it has to choose between targeting an interest rate and targeting the money supply C. Fed can target both at the same time, but it has chosen to target the interest rate as it is more reliable as a target
Which statement is correct?
A. Monopolist firms are sheltered from competitive forces and such an environment makes them subject to X-inefficiency. B. Monopolist firms are in industries with low barriers to entry that tend to lower the cost of producing products. C. Competitive firms tend to be more efficient than monopolist firms because they maximize per-unit profits, not total profits. D. Monopolist firms tend to be more internally efficient than competitive firms because they have a single goal of profit maximization.