Which of the following situations will arise in the domestic market following the imposition of an import ban?
A. imports increase, domestic production increases, prices increase
B. imports increase, domestic production decreases, prices decrease
C. imports decrease, domestic production increases, prices increase
D. imports decrease, domestic production increases, prices decrease
Answer: C
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The results of a U.S. quota on the importation of Japanese automobiles is likely to _______ for automobiles in the United States and _______ automobiles in Japan.
A) decrease the demand; increase the demand for B) reduce the quantity demanded; increase the quantity demanded of C) increase the quantity demanded; increase the quantity demanded of D) increase the demand; decrease the demand for
The classical theory of inflation illustrates the relationship among:
A. savings, investment, and the interest rate. B. money supply, savings, and investment. C. money supply, output, and the overall level of prices. D. spending, saving, and the overall price level.
If the price elasticity of demand is infinite, demand is:
A. upward sloping. B. inelastic. C. elastic. D. perfectly elastic.
Costs that are borne solely by the individuals who incur them are called
A. social costs. B. implicit costs. C. private costs. D. public costs.