Which of the following correctly identifies the impact of tariffs on the producers of import-competing products in the imposing country?
A. They are forced to go out of business in the long run.
B. They can expand their production and sales.
C. They can price their products higher than the imported goods.
D. They are forced to charge a price equal to the average cost of production.
Answer: B
You might also like to view...
The product diversity resulting from monopolistic competition comes at the expense of having:
a. firms that will earn positive profits. b. firms that are too small to maximize profit. c. higher profit than would prevail under perfect competition. d. efficiency in the long run
Recall the Application about the Fed's response to the collapse of the investment house Bear Stearns as well as its handling of the 2008 financial crisis with respect to other financial institutions to answer the following question(s). According to this Application, the Fed increased its lending by hundreds of billions of dollars to financial institutions as a response to the ongoing financial crisis. This increase in loans to financial institutions increased the supply of money in the economy. When the supply of money increases, the money supply curve will:
A. shift to the right, increasing the interest rate. B. shift to the right, decreasing the interest rate. C. shift to the left, increasing the interest rate. D. shift to the left, decreasing the interest rate.
Refer to the information provided in Table 20.4 below to answer the question(s) that follow. Table 20.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 20.4. Germany has
A. an absolute advantage in wine production. B. an absolute advantage in beer production. C. a comparative advantage in beer production. D. all of the above.
Use the following information to answer the next question.The following items describe the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment.Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month but still has not gotten a job offer.George used to work in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in a few months when national economic conditions improve.Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the federal government cut defense spending. She has been looking for similar work for a year but no company seems interested in her
aircraft design skills. Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year but was unsuccessful and quit looking for work. Which individual(s) would be included in the calculation of the natural unemployment rate? A. Mollie and Jeanette B. George and Ricardo C. Mollie only D. George only