Reducing a tariff on a particular good does which of the following?
a. It decreases the price of the domestic good to domestic consumers
b. It increases the price of the good to domestic consumers.
c. It redistributes income away from domestic producers toward domestic consumers.
d. both (a) and (c)
d
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A commodity speculator who thinks next fall's corn harvest will actually be much larger than most people now anticipate will want to
A) buy corn now for sale in September. B) buy September corn futures. C) buy land suitable for growing corn. D) sell September corn futures. E) sell corn in September from stocks accumulated between now and September.
In the foreign exchange market, a balance of payments deficit is represented by:
A) excess supply of dollars. B) excess demand for dollars. C) equilibrium in the foreign exchange market. D) none of the above.
In the United States in the late 1970s, nominal interest rates were high and inflation rates were very high. As a result, real interest rates were
a. very high. b. high. c. low, but never negative. d. low, and in some years they were negative.
In Figure 1.9, the slope of the line between points L and M is
A. 1.20. B. 0.75. C. 0.80. D. 0.67.