Steel producers in the United States observe that foreign sales of U.S. steel has drastically declined due to stringent trade policies adopted by the foreign governments and unfair treatment of U.S. steel exports in foreign countries. The lobbying efforts of such loss making U.S. steel manufacturers induces the domestic government to restrict the entry of imported steel and help stimulate the
sales of domestically produced steel. Which of the following is most similar to the example mentioned above?
a. A tariff imposed by the government to stimulate domestic production of a high-technology good with positive spillover effects
b. A tariff imposed by the government on the import of cotton textiles because it is an infant industry in the domestic country
c. An import tariff applied against a foreign monopoly supplying the domestic market
d. Taxes imposed by the government on an import competing industry that generates a negative production externality
e. Reciprocal tariffs introduced by the government of Mexico on tobacco imports from Brazil in retaliation to unfair treatment of Mexican tobacco exports to the latter
e
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A sales tax is divided so that the
A) buyers pay the full amount if demand is perfectly elastic. B) buyers pay the full amount if supply is perfectly inelastic. C) sellers pay the full amount if supply is perfectly elastic. D) sellers pay the full amount if demand is perfectly elastic.
Average total cost:
A. is the sum of average fixed costs and average variable costs. B. is total cost divided by total output. C. is minimized when it equals marginal cost. D. All of these are true.
Interest paid on a bank loan by a local ice cream producer is: a. an implicit cost for the ice cream producer
b. considered by an accountant when calculating the cost of running the ice cream business. c. an explicit cost for the ice cream producer. d. both b. and c.
Wal-Mart imports $_______ billion a year of microwave ovens, TV's, DVD players, toys, shoes apparel and other goods from _______.
Fill in the blank(s) with the appropriate word(s).