One impact of an import quota is to:
A. increase the price of the domestic good for the consumer.
B. decrease the price of the imported good for the consumer.
C. redistribute income from domestic producers to domestic consumers.
D. decrease the price received by foreign producers.
Answer: A
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Why is the demand for loanable funds downward sloping?
A) People save less when the interest rate is low. B) More people borrow money when interest rates are low than when they are high. C) Fewer investment projects have returns that can beat higher interest rates, so people are more willing to invest at higher interest rates. D) People save more when the interest rate is high.
Describe the supply curve in a monopoly market
What will be an ideal response?
What is the relationship between the value of marginal product of labor and the marginal product of labor?
What will be an ideal response?
The short-run aggregate supply curve slopes
a. downward because firms can sell more, and hence, will produce more when prices are lower b. downward because firms find it costs less to purchase labor and other inputs when price are lower, and hence they produce more c. upwards because when the price level rises, output prices rise relative to input prices (costs), raising profit margins and increasing production and sales d. upward because firms find it cots more to purchase labor and other inputs when prices are higher, and hence they must produce and sell more in order to make a profit