Refer to the graph shown. Given supply, S0, and demand, D, what tariff would the government have to impose on lumber imported from Canada to reduce imports to 600 tons?
A. $7 a ton
B. $2 a ton
C. $13 a ton
D. $6 a ton
Answer: D
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An increase in currency held outside the banks is ________
A) a currency drain B) income C) a currency surplus D) wealth
A contractionary monetary policy decreases net exports by ________ interest rates and ________ the value of the dollar
A) lowering real; decreasing B) lowering real; increasing C) raising nominal; increasing D) raising real; increasing
Suppose an economy only produces two goods, robots and ice cream. Last month, the economy produced 10 robots and 200 gallons of ice cream. This month, the same economy produced 15 robots and 240 gallons of ice cream. Which of the following statements could explain this change?
a. This month, the economy reduced the unemployment of its resources. b. This month, the economy experienced an improvement in technology. c. This month, the economy experienced an increase in resources d. All of the above are correct.
An expansion of the money supply by the country's central bank
A. decreases the willingness of banks to lend money. B. reduces the price level. C. causes domestic interest rates to fall. D. increases the level of international capital inflows.