A tariff imposed on foreign imports will cause _____
a. demand for imports to increase
b. domestic prices of imported goods to rise
c. market supply of importable goods to increase
d. domestic prices of imported goods to fall
e. market supply of domestic goods to decline
b
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Answer the question below based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.YearUnits of OutputPrice per Unit18$22103315441855206If year 2 is the base year, the Consumer Price Index for year 1 is
A. 67. B. 150. C. 100. D. 50.
Which of the following is likely to happen due to a contractionary monetary policy?
A) An increase in the inflation rate B) An increase in labor supply C) An increase in the federal funds rate D) An increase in labor demand
The "income effect" in the market for aspirin means that
A) aspirin are generally taken by people with higher than average incomes. B) a decrease in the price of a substitute good like acetaminophen will make aspirin takers feel a little poorer than they were before. C) an increase in the price of aspirin will reduce the total purchasing power of aspirin takers, making them able to afford fewer aspirin. D) an increase in the price of aspirin will cause headache sufferers to look for a lower priced remedy.
Refer to the above figure. From the standpoint of society, the optimal price is
A) P1 B) P2 C) P3 D) P5