Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. The figure to the right shows the impact of this tariff. With the tariff in place, the United States produces
A. 25 million pounds of rice
B. 10 million pounds of rice
C. 31 million pounds of rice
D. 15 million pounds of rice
Ans: D. 15 million pounds of rice
You might also like to view...
Microprudential supervision does all of the following EXCEPT
A) checking capital ratios of a bank. B) checking a bank's compliance with disclosure requirements. C) assessing the riskiness of an individual bank's activities. D) focusing on financial system liquidity.
To answer the next question, use the following graph showing the domestic demand and supply curves for a specific standardized product in a particular nation.
If the world price for this product is $1.60, this nation will experience a domestic
A. surplus of 160 units, which it will export. B. surplus of 160 units, which will reduce the world price to $1.00. C. shortage of 160 units, which will increase the domestic price to $1.60. D. shortage of 160 units, which it will meet with 160 units of imports.
The SWOT matrix focuses on the assessment of two broad classes of environmental factors
Internal and External Internal and Environemtal External and Regulatory External and Competitive
The upward slope of the supply curve reflects the
A. Principle of diminishing marginal productivity B. Principle of specialization in production C. Fact that price and quantity supply are inversely related D. Law of increasing substitution