A tariff placed on a foreign good will
A) reduce the price of a competing domestic good.
B) increase the price of a competing domestic good.
C) increase the quantity sold of both the foreign and competing domestic good.
D) reduce the quantity sold of both the foreign and competing domestic good.
Answer: B
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A quota is a numerical limit on the quantity of a good that can be imported
Indicate whether the statement is true or false
Which of the following is not a trade-restricting practice?
a. subsidy b. tariff c. quota d. a voluntary limit on exports e. higher safety standards for imports than for the same good sold domestically.
The division of variables into real and nominal is a dichotomy assumed by
a. classical economists. b. John Maynard Keynes. c. the wealth effect. d. short-run macroeconomic theory.
Futures markets for agricultural commodities allow to reduce
A. price and profit uncertainty in farming. B. price uncertainty in farming. C. price and output uncertainty in farming. D. price, output, and profit uncertainty in farming.