When a tariff is imposed on a good, domestic consumers of the good ________ and domestic producers of the good ________
A) win; win
B) lose; win
C) lose; neither win nor lose
D) lose; lose
E) win; lose
B
You might also like to view...
We say that the demand for labor is a derived demand because
A. labor is hired using the MRP = MRC rule. B. the forces of supply and demand do not apply directly to labor markets. C. we demand the product that labor helps produce rather than labor service per se. D. labor is a necessary input in the production of every good or service.
Which of the following statements about private and social costs associated with a negative externality is TRUE?
A) Social costs include externalities. B) Private cost do not include externalities. C) Social costs are never smaller than private costs. D) All of the above.
The classical model indicates that at the equilibrium interest rate, saving is
A) equal to investment. B) greater than investment. C) unnecessary for investment. D) less than investment.
Suppose at the current level of labor used, MRP = $10 and MFC = $10. To maximize profits, the firm should
A. maintain the current level of labor. B. shut down. C. reduce the level of labor. D. hire more labor.