In 2002 the steel industry successfully lobbied Congress to impose a tariff of 8 to 30 percent on foreign steel. Which of the following is an unintended consequence of this tariff?
(a) U.S. steel firms were protected from the price cutting efforts of foreign competitors benefiting from governmental support in their countries.
(b) U.S. steel firms could charge higher steel prices in order to boost profits.
(c) Many steel-using firms in the U.S. went out of business and about 200,000 workers lost their jobs to higher steel prices.
(d) American steel workers kept their jobs.
(c)
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If whenever one variable increases, another variable also increases, then these two variables are ________ related
A) inversely B) positively C) cross-sectionally D) trend-line E) negatively
If a severe drought causes the harvest of corn to be 10 percent less than anticipated, it will cause a large increase in the price of corn if
A) corn is scarce. B) the demand for corn is highly elastic. C) the demand for corn is highly inelastic. D) the supply of corn is highly elastic. E) the supply of corn is highly inelastic.
Other things remaining the same, the higher the current exchange rate, the larger is the expected profit from buying dollars
Indicate whether the statement is true or false
Which of the following would cause the US dollar to increase in value compared to the Japanese yen?
(a) An increase in the money supply in the US (b) An increase in interest rates in the US (c) An increase in the US trade deficit with Japan (d) The US purchase of gold on the open market (e) The sale of $2 billion dollars worth of Japanese television sets to the US