If a small country imposes a tariff on imported motorcycles
A. the surplus of both the domestic producers and consumers of motorcycles will decline.
B. the surplus of both the domestic producers and consumers of motorcycles will increase.
C. the surplus of the domestic producers of motorcycles will increase, but the surplus of the domestic consumers will decline.
D. the surplus of the domestic producers of motorcycles will decline, but the surplus of the domestic consumers will increase.
Answer: C
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A) both the supply and the demand for automobiles. B) the supply but not the demand for automobiles. C) the demand but not the supply of automobiles. D) neither the supply nor the demand for automobiles.
Game theory is applicable to oligopoly behavior because oligopolists
A) use strategic behavior. B) ignore rival firms. C) are price takers. D) can only be profitable if they collude.
Describe the difference between discretionary and automatic fiscal policy
What will be an ideal response?
In the foreign exchange market, a change in which of the following will result in a movement along the demand curve for U.S. dollars?
A) the exchange rate B) the U.S. interest rate C) the interest rate in the foreign country D) the expected future exchange rate