Suppose that the United States imposes a tariff of $500 per car on Japanese cars. The most likely effect will be to increase the price of cars in the United States by:
A) less than $500 per car, and decrease the price of cars in Japan by less than $500 per car.
B) $500 per car.
C) more than $500 per car.
D) less than $500 per car without affecting the price of cars in Japan.
Ans: A) less than $500 per car, and decrease the price of cars in Japan by less than $500 per car.
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Governments can increase the consumption of a product that helps in reducing negative externalities by
A) subsidizing the purchase of the product. B) taxing the consumption of the product. C) assigning property rights to the producer of the product. D) taxing the production of the product.
For a consumer to maximize utility, he will choose the
a. point where the slope of the budget line equals the slope of the indifference curve. b. any point where the budget line and indifference curve intersect. c. point where he gets the most of the good he prefers most. d. point where the marginal rate of substitution is greatest. e. the point where marginal utility is zero for both goods
The demand for the product of a competitive price-taker firm is:
A. perfectly inelastic. B. perfectly elastic. C. greater than zero but less than one. D. dependent on the availability of substitutes for the firm's product.
Data on exports and imports for the United States over the period from 1890 to 2018 show that
A. a higher percentage of U.S. goods was exported in recent years than in earlier years. B. the percentage of total output exported by U.S. firms fell dramatically during World War I and World War II. C. the United States had large trade deficits throughout this entire period. D. the United States had large trade surpluses throughout this entire period.