Refer to the diagram, where S d and D d are the domestic supply and demand for a product and P c is the world price of that product. S d + Q is the product supply curve after an import quota is imposed. The effect of the import quota on domestic price and domestic consumption is:
A. the same as that of a tariff of P c P t .
B. the same as that of a tariff of P t P a .
C. the same as that of a tariff of P c P a .
D. to raise price by more and reduce consumption less than a tariff of P c P t .
A. the same as that of a tariff of P c P t .
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The Leontief paradox can be summarized as the finding that U.S. exports tend to come from capital-intensive industries, while U.S. imports are produced using relatively labor-intensive techniques
Indicate whether the statement is true or false
Which of the following is not a characteristic of most less-developed countries?
a. low per capita income b. political instability c. a high percentage of the population under the age of 15 d. inadequate infrastructure e. high productivity
In the short run, efforts to reduce the unemployment rate are likely to cause
a. a decrease in the inflation rate. b. an increase in the inflation rate. c. no change in the inflation rate. d. Uncertain-economists have found no relationship between the two variables.
For any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay
a. True b. False Indicate whether the statement is true or false