Which of the following would be expected if the tariff on foreign-produced shoes were decreased?
a. The domestic price of shoes would fall.
b. The supply of foreign shoes to the domestic market would decline, causing shoe prices to rise.
c. The number of unemployed workers in the domestic shoe industry would decline.
d. The demand for foreign-produced shoes would decrease, causing the price of shoes to increase in other nations.
A
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If the firm is using only one variable input, explain why the condition W = MRPL is thesame condition as P = MC
What will be an ideal response?
Factors that led to worsening financial market conditions in East Asia in 1997-1998 include
A) weak supervision by bank regulators. B) a rise in interest rates abroad. C) unanticipated increases in the price level. D) increased uncertainty from political shocks.
Which of the following identifies an important reason why empirical studies find that joining the European Economic Community (EEC) in 1973 may have imposed a substantial net cost on Britain?
A. Removal of trade barriers on imports from Australia and New Zealand B. Trade creation for British manufactured goods C. Withdrawal of subsidies received by British farmers D. Trade diversion on agricultural products
An decrease in demand is represented by a
A. movement down the demand curve. B. shift of the demand curve to the right. C. movement up the demand curve. D. shift of the demand curve to the left.