One reads the following in a newspaper: "Today the president and Congress agreed to impose new restrictive quotas on Japanese cars coming into the country." As a result, an economist would predict that the
A) supply of cars in the country will remain the same and the (average) price of cars will fall.
B) supply of cars in the country will fall and the (average) price of cars will rise.
C) supply of cars in the country will rise and the (average) price of cars will fall.
D) demand for cars in the country will fall and the (average) price of cars will rise.
E) demand for cars in the country will rise and the (average) price of cars will rise.
B
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Refer to the figure above. Everything else remaining unchanged, at what rate will the wage be held if there is downward wage rigidity in the market, when the demand curve shifts to LD2?
A) $50 B) $30 C) $40 D) $20
Suppose that the current exchange rate between the dollar and peso is $1 equals 10 pesos. If the exchange rate changes to $1 equals 8 pesos, which of the following is TRUE?
A) The dollar depreciates and U.S. exports become cheaper. B) The dollar appreciates and U.S. exports become cheaper. C) The peso depreciates and imports from Mexico become cheaper. D) The peso appreciates and imports from Mexico become cheaper.
Which British colony in North America was the last to be founded, and was designed to assist those who owed debts in the Old World?
a. Georgia b. Rhode Island c. Florida d. Pennsylvania.
The nominal exchange rate is 2 Barbados dollars per U.S. dollar. If the price of a good in Barbados is 3 Barbados dollars and the price in the U.S. is 2 U.S. dollars, what is the real exchange rate to the nearest 100th?
a. 3 Barbados goods per U.S. good b. 1.33 Barbados goods per U.S. good c. .75 Barbados goods per U.S. good d. none of the above is correct