If the government enacts a tariff on a component imported by a domestic manufacturer from an international supplier, which of the following would be the best example of a disruptive outcome?
a. The manufacturer would pay a higher price for the component.
b. The manufacturer would seek an alternative supplier for the component.
c. The manufacturer would move production overseas to the country where the component is manufactured.
d. The manufacturer would negotiate a lower price for the component.
c. The manufacturer would move production overseas to the country where the component is manufactured.
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When the Federal Reserve lends reserves to depository institutions, it charges them interest. That interest rate is called the
A) federal funds rate. B) loan rate. C) prime rate. D) discount rate.
The overall mortality rate in the United States has remained fairly constant for the past 30 years
Indicate whether the statement is true or false
If Canada can produce 500 TV sets at the cost of 10 cars, while Mexico can produce 1,000 TV sets at the cost of 8 cars, we know the following:
a. Canada has a comparative advantage in TV production. b. Mexico has the absolute advantage in TV production. c. The two countries' joint output equals 1,500 TV sets and 18 cars without trade, but it will be higher after proper specialization and trade. d. Canada has a comparative advantage in car production. e. Canada produces more cars than Mexico does.
Long-run equilibrium under monopolistic competition requires that
a. the demand curve intersect the average cost curve. b. the demand curve be tangent to the average cost curve. c. price be equal to marginal cost. d. quantity produced be at the point where average cost is at a minimum.