Refer to the information provided in Figure 4.1 below to answer the question(s) that follow.
Figure 4.1Refer to Figure 4.1. Assume that initially there is free trade. If the United States then imposes a 10-cent tax per apple,
A. U.S. imports of apples will increase by 6 million per day.
B. the quantity of apples demanded will be reduced by 4 million apples per day.
C. the price of apples in the United States will increase to 40 cents per apple.
D. the quantity of apples supplied by U.S. firms will increase by 6 million apples per day.
Answer: C
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Referring to Figure 19.1, Mexican goods will become more expensive in the United States if the exchange rate goes from ________ to ________ pesos to the dollar
A) 10; 13 B) 11; 13 C) 12; 11 D) 12; 13
Describe the argument that education generates a positive externality. Why might this externality not be relevant in terms of economic efficiency?
What will be an ideal response?
Exhibit 6A-3 Consumer equilibrium
?
Given the budget line and indifference curves shown in Exhibit 6A-3, assume the consumer is initially at point W. To maximize total utility, the consumer should:
A. purchase more of good Y and less of good X. B. remain at point W. C. move to point X and then point Y. D. purchase more of good X and less of good Y.
Restructuring of a major industry resulted from the:
A. U.S. Steel case. B. AT&T case. C. IBM case. D. DuPont cellophane case.