Politicians often argue for tariff increases in order to reduce the size of a balance of trade deficit. If tariffs are increased, the long-run effect is most likely to be:
a. a decrease in both U.S. imports and exports
b. an increase in both U.S. imports and exports.
c. an decrease in U.S. imports, and an increase in U.S. exports.
d. an increase in U.S. imports, and a decrease in U.S. exports.
a
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The supply curve displays the wishes of _____________.
Fill in the blank(s) with the appropriate word(s).
Whether exchanges are strictly domestic or across international borders, every party to any transaction
A. must pay the highest retail value. B. expects to gain. C. tries to break even. D. produces the highest rate of output.
Laws are efficient if they
A. help maximize total benefits of behavior. B. restrict all undesirable action like polluting. C. uphold absolute property rights. D. impose no costs on citizens. E. work to equate the marginal benefits and marginal costs of behavior.
The marginal cost curve is a competitive firm's supply curve; it shows how many units of output a firm will be willing to sell at different prices.
Answer the following statement true (T) or false (F)