The U.S. is planning on imposing quotas on tires imported from china. Domestic retailers predict this will result in an increase in consumer prices on tires by about $10
Use a supply and demand graph with brief explanation to show the effects of an import quota. Assume the quota is binding.
The restriction on imports will shift back the supply curve as less imports will be allowed into the country. This will raise the price and lower the quantity.
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Explain the differences between inclusive and extractive economic institutions
What will be an ideal response?
Which of the following does not appear in GDP as a part of government spending?
A. Clipboards at the Department of Motor Vehicles. B. Maintenance of government buildings. C. Social Security payments. D. City fireworks displays on the Fourth of July.
Which of the following is not an example of derived demand?
a. Increased demand for corn when cornflakes become more popular. b. Increased demand for iTunes music when sales of iPods increase. c. Increased demand for hybrid automobiles when gas prices rise. d. Decreased demand for movie tickets when ticket prices rise.
The population of Lucien’s country is currently expanding at a rate of 2 percent, while its output is growing at a rate of 2.5 percent. If the population were to begin increasing at a rate of 3 percent, while output growth stayed at 2.5 percent, the per capita output would ______.
a. remain unchanged b. rise then fall c. rise d. fall