Which of the following situations will arise in the domestic market following the removal of an import quota?
A) imports increase, domestic production increases, prices increase
B) imports decrease, domestic production decreases, prices increase
C) imports decrease, domestic production increases, prices decrease
D) imports increase, domestic production decreases, prices decrease
D
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In a decreasing cost industry, the
a. long-run supply curve is horizontal b. short-run supply curve slopes downward c. long-run demand curve slopes upward d. long-run supply curve slopes downward e. long-run supply curve slopes upward
Which of the following is true of a perfectly contestable market?
A. P > MC and P < ATC B. P < ATC C. P = MC D. P > MC
An example of a(n) ________ comparative advantage is U.S. consumers buying automobiles produced in Japan because Japanese companies have a reputation for producing a higher-quality automobile than those produced in the United States.
A. subsidized B. acquired C. natural D. unwarranted
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential