In general, what is the final result of trade barriers?
What will be an ideal response?
Trade barriers prevent a nation from reaping the full benefits of specialization, push to adopt relatively inefficient production techniques, and force consumers to pay higher prices for protected products than they would otherwise pay. It should be noted however, that domestic producers do win in the short run by enjoying an artificial comparative advantage.
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Refer to Scenario 12.1 At the assumed annual inflation rate of 5 percent, approximately how much will the $6.00 pack of cigarettes cost in 10 years, when Jennifer reaches the age of 35?
A) $8 B) $10 C) $16 D) $23
"The Clayton Act repealed the Sherman Act so that only the Clayton Act remains in force." Is the previous statement correct or incorrect?
What will be an ideal response?
In the figure above, what is the loss of consumer surplus if the firm is a perfectly price-discriminating monopoly instead of a perfectly competitive industry?
A) $0 B) $22.50 C) $45.00 D) $90.00
Which statement is FALSE?
A. A demand curve slopes downward to the right. B. Moving down along a demand curve, price falls and quantity rises. C. Moving up a demand curve, price rises and quantity rises. D. A demand curve shows an inverse relationship between price and quantity.