An import quota will
A) lead to a shift of the demand curve.
B) leave the equilibrium price unchanged and increase the quantity sold.
C) limit the amount of a foreign good that can be brought into the United States.
D) limit the amount of a good local producers can make.
C
You might also like to view...
If, in a closed economy, real GDP is $30 billion, consumption is $20 billion, and government purchases are $5 billion, what is total saving in the economy?
A) $5 billion B) $15 billion C) $45 billion D) $55 billion
If the government wants to reduce the burning of fossil fuels, it should impose a tax on
a. buyers of gasoline. b. sellers of gasoline. c. either buyers or sellers of gasoline. d. whichever side of the market is less elastic.
If the MPP of an additional unit of labor is 3 units per hour, product price is constant at $8 per unit, and the wage rate is $26 per hour, then
A. Product price must be reduced if profits are to be made. B. The employer should lower wages and accept less employment of labor. C. The additional unit of labor should be employed. D. The additional unit of labor should not be employed because it costs more than it is worth.
Answer the following questions true (T) or false (F)
1. As the number of firms in a market increases, the supply curve will shift to the right and the equilibrium quantity will rise. 2. If the population increases and input prices decrease, the equilibrium quantity of a product will definitely increase. 3. If the demand for a product increases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase.