In effect, tariffs on imports are:

A. special taxes on domestic producers.
B. subsidies to domestic consumers.
C. subsidies to foreign producers.
D. subsidies for domestic producers.


Answer: D. subsidies for domestic producers.

Economics

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The concept of opportunity cost in a fully employed economy with technology and resources held constant tells us that

A. expansion of output in one industry means expansion cannot occur in another industry. B. expansion of output in one industry means output in another industry must contract. C. output cannot be increased in any industry. D. output of all industries must contract until more resources are found.

Economics

If orange juice prices double next year, there will be a

A. rightward shift in the demand for grapefruit juice. B. rightward shift in the supply of grapefruit juice. C. leftward shift in the supply of grapefruit juice. D. leftward shift in the demand for grapefruit juice.

Economics

Limited personal liability is an advantage for

A) sole proprietorships and partnerships. B) partnerships and corporations. C) sole proprietorships and corporations D) corporations.

Economics

Economists pay special attention to making choices at the margin

a. true b. false

Economics