When a nation removes a tariff on a product, this policy action
A. hurts nations exporting the product.
B. benefits consumers of the product.
C. benefits domestic producers of the product.
D. benefits the government.
Answer: B
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Assuming all else equal, if there is a contraction in the quantity of bank account balances, it will cause:
A) a downward movement along the demand curve for reserves. B) a leftward shift in the demand curve for reserves. C) a rightward shift in the demand curve for reserves. D) an upward movement along the demand curve for reserves.
Lizzie's budget line is shown in the figure above. If the price of a cookie rises, Lizzie's real income in terms of cookies ________ and her real income in terms of magazines ________
A) decreases; increases B) increases; decreases C) decreases; does not change D) increases; does not change
What is deadweight loss?
a. It is the amount of surplus that consumers lose due to monopoly. b. It is the amount of surplus that producers lose due to perfect competition. c. It is the amount of surplus which is completely lost to society due to monopoly. d. It is the amount of surplus which was earned by consumers under perfect competition and is transferred to producers due to monopoly.
Crowding out occurs
a. when an increase in government spending crowds out tax revenues. b. when an increase in government spending increases investment spending. c. when an increase in government spending crowds out bonds. d. when an increase in government spending crowds out other types of spending. e. when an increase in government spending crowds out the money supply.