If the United States imposes an import quota on clothing, U.S. imports
a. increase, exports increase, and U.S. net exports are unchanged.
b. increase, exports decrease, and U.S. net exports increase.
c. decrease, exports increase, and U.S. net exports decrease.
d. decrease, exports decrease, and U.S. net exports are unchanged.
D
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Why is voluntary exchange an important source of economic prosperity?
a. It moves goods from people who value them less to people who value them more. b. It makes it possible to produce a larger output as a result of lower per unit costs that often accompany large-scale production. c. It makes it possible to produce a larger output as a result of gains from division of labor and specialization. d. All of the above are correct.
A market is NOT contestable if:
A. existing firms cannot respond quickly to entry by lowering their price. B. there are sunk costs. C. consumers respond quickly to a price change. D. all producers have access to the same technology.
Which of the following would result in a short-run increase in the wage rate in a competitive labor market?
A. an increase in immigration B. a decrease in labor demand C. an increase in the output price D. a decrease in productivity E. an increase in native labor supply
In economic terms, the total price of a pound of meat for an individual who has waited in line is
A) the money price paid to the butcher for the pound of meat. B) the money price of meat relative to the price of bread or other necessity. C) the money price of the meat plus the opportunity cost of time spent waiting in line. D) the money price of an equal amount of meat substitute, such as beans and rice.