Identify the two losses of efficiency associated with the imposition of a tariff
What will be an ideal response?
First, consumers must pay a higher price for goods that could be produced at lower cost. Second, marginal producers are drawn into the industry away from other goods, resulting in inefficient domestic production.
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Changes in domestic and foreign income result in:
A) movements along the demand and supply curves of the foreign exchange market. B) shifts in the demand and supply curves of the foreign exchange market. C) all of the above. D) none of the above.
According to the principle of comparative advantage,
a. a country will benefit by specializing in the production of goods in which it has a relatively lower cost of production. b. a country will benefit by specializing in the production of goods in which it has a relatively higher cost of production. c. a country will benefit by importing goods in which it has a relatively low opportunity cost. d. a country will benefit by becoming economically self-sufficient.
Which statement about the total variable cost curve is true?
a. It begins at the origin and increases before decreasing again. b. The total variable cost curve is the same at all levels of output. c. The total variable cost curve is increasing but at a decreasing rate. d. It begins at the origin and is always increasing. e. There is no such thing as a total variable cost curve.
The urban consumers that the CPI is based on includes:
A. institutionalized persons. B. persons in the military. C. incarcerated persons. D. the CPI does not include any of these.