If a government imposes a quota on imports of a popular doll, the price of the doll in the country will ________ and the quantity purchased in the country will ________
A) rise; increase
B) rise; decrease
C) fall; increase
D) fall; decrease
B
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The model of perfect competition is valuable for
A) prediction. B) comparison to other markets. C) Either A or B. D) None of the above.
If a country's population increases while the supply of farmland is fixed, then farmland prices will most likely
a. decrease because people spend more money on food and have less to spend on rent b. increase because the marginal revenue product of food decreases c. decrease because farmers must cultivate less productive foods such as potatoes d. increase because the marginal revenue product of land increases e. stay the same because there is no relation between farm land prices and population
The national debt is the
a. difference between a nation's exports and imports of goods and services. b. sum of the personal debt of all citizens in the United States. c. indebtedness of the federal government in the form of outstanding interest-earning bonds. d. sum of the net personal debts of Americans to foreigners.
Which of the following explains why higher prices in the goods and services market measured by the CPI leads to an upward-sloping aggregate supply curve??
A. ?The higher prices will temporarily improve profit margins because the cost of wages and salaries are fixed in the short run. B. ?The higher prices will reduce the purchasing power of the fixed quantity of money and, thereby, stimulate additional output. C. ?The higher prices will expand the economy's resource base and, thereby, stimulate additional output. D. ?The higher prices will improve technology and, thereby, stimulate additional output.