The effect of a tariff or a quota is to
A. raise the price of a commodity in the exporting country above the price in an importing country.
B. raise the price of a commodity in an importing country above the price in the exporting country.
C. lower the price of the commodity in all countries.
D. raise the price of the commodity in all countries.
Answer: B
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Market equilibrium occurs where the quantity supplied is equal to the quantity demanded
Indicate whether the statement is true or false
Carvel advertises a football-shaped ice cream cake for $7; you can buy a second one for only $4 . What do they know about consumer preferences?
a. Consumers would never buy a second ice cream cake. b. Two cakes are worth less to the consumer than one. c. Marginal utility of ice cream cakes diminishes. d. Consumers only value the first cake at $4. e. Consumers value all cakes they eat at $4.
From a purely economic point of view, discrimination is established if: a. black teenagers earn more than white teenagers do
b. all factors are earning an amount equivalent to their marginal revenue product. c. women earn less than men do. d. equivalent factors earn different payments for equal contributions to output.
Which of the following is not held constant in the short run when determining the aggregate supply curve?
a. Interest rates b. Rent c. Wages d. Profit e. Price level