This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, if the economy is operating under free trade, who would be opposed to a tariff?
A. Domestic producers
B. Domestic consumers
C. Foreign producers
D. Both A and B would be opposed to a tariff.
Answer: D
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Moral hazard can be a problem in lending since lenders share __________ in the __________ risk
A) proportionately; upside B) proportionately; downside C) disproportionately; upside D) disproportionately; downside
The consumption function
a. illustrates the relationship between real disposable income and real consumption spending b. illustrates the relationship between the price level and real consumption spending c. is the relationship between productivity and real consumption spending d. shows how real consumption increases when real disposable income decreases e. illustrates the relationship between real consumption spending and employment
Which statement is not true regarding the total variable cost curve?
A. It shows the variable cost of production given current factor prices. B. It is a horizontal line. C. It increases as output increases. D. It starts at the origin.
With no international trade, a country ________ consume at a point outside of its PPF; with international trade, a country ________ consume at a point outside of its PPF
A) cannot; can B) can; can C) can; cannot D) cannot; cannot E) None of the above answers is correct because the presence or absence of international trade has nothing to do with where a country consumes in comparison to its PPF.