After the United States introduces a tariff in the market for widgets, the price of widgets in the United States will:
a. decrease
b. increase.
c. remain the same.
d. change in an indeterminate manner.
b
You might also like to view...
Economists use abstract models because:
A. every economic situation is essentially the same, so specific details are unnecessary. B. every economic situation is unique, so it is impossible to make generalizations. C. computers have allowed economists to develop abstract models. D. they are useful for describing general patterns of behavior.
Because of the significant snow fall in the plains this year, the supply of fertilizer to Washington State's apple farmers substantially decreased. As a result, the price of fertilizer has increased in Washington State. This statement indicates the
A. amount of apples that will be available at various prices will decline. B. price of apples will decrease. C. demand for apples will necessarily decrease. D. supply for apples will necessarily increase.
The largest share of total production in the United States is
A) government goods and services. B) exported goods and services. C) capital goods. D) consumption goods and services. E) imported goods and services.
Which of the following occurs when an externality is internalized?
A) Higher social well-being B) Higher private benefit C) Larger deadweight loss D) Higher returns to scale