Which of the following is likely to happen if the government of a country lowers import tariffs?
A) The domestic producers will be safe from foreign competition.
B) The revenue earned by the government will fall.
C) The price of imported goods will rise in the domestic market.
D) The volume of the country's imports will fall.
B
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Referring to the graph above, assume that, at first, the labor market is in equilibrium at point 4. In which scenario does unemployment rise, with no change in the quantity of employment?
A) real wage rises to the level of points 1 and 2 B) supply shifts to pass through point 5, with no change in the real wage C) demand shifts to pass through point 3, with no change in the real wage D) supply shifts to pass through point 3, with no change in the real wage
Suppose Joan uses her savings to purchase computer equipment for her new consulting business. Soon after this, the market interest rate rises. As a result, her
a. explicit costs rise immediately b. accounting profit falls immediately c. accounting profit rises immediately d. economic profit rises immediately e. economic profit falls immediately
The primary reason why the oversimplified formula overstates the multiplier is that it ignores price-level changes, which reduce the multiplier
a. True b. False Indicate whether the statement is true or false
Which of the following is not a source of monopoly power?
A. Patents B. Rapid low cost technological change in the industry C. Exclusive control over inputs D. Economies of scale