Refer to the information provided in Figure 4.4 below to answer the question(s) that follow.
Figure 4.4Refer to Figure 4.4. If the United States levies no tariffs on imported oil, which of the following would occur?
A. The price of oil in the United States would fall to $100 per barrel, and the United States would import 10 million barrels of oil per day.
B. The price of oil in the United States would be $150 per barrel, and the United States would import 2 million barrels of oil per day.
C. The price of oil in the United States would be $125 per barrel, and the United States would import 6 million barrels of oil per day.
D. The price of oil in the United States after the U.S. government eliminated all tariffs on imported oil cannot be determined from this information.
Answer: C
You might also like to view...
Refer to the table below. According to the table, Julia has the absolute advantage in: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. pies. B. cakes. C. neither pies nor cakes. D. both pies and cakes.
According to the net exports effect, as the price level falls relative to the rest of the world,
a. foreigners buy fewer goods. b. foreigners buy more U.S. goods. c. the aggregate demand curve shifts to the left. d. the aggregate demand curve shifts to the right. e. the supply of U.S.-made goods increases.
An example of barter is voluntary work at an old-age home
a. True b. False Indicate whether the statement is true or false
Which is not a criticism of the marginal productivity theory of distribution?
A. It assumes that the existing distribution of ownership factors is fair and just when it may not be. B. It does not tell us much about real policy matters. C. A factor’s MRP does not in any way correspond to productive effort. D. It is inconsistent with most empirical observations.