If a tariff is imposed on imports of shrimp into the United States, U.S. producer surplus from shrimp will ________ and U.S. total surplus from shrimp will ________
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
E) increase; not change
B
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Suppose there are two goods: guns and roses. Also suppose Australia is initially closed to trade. When international trade is opened, Australia chooses to sell guns and buy roses in the world markets.
(i) Which is higher, Australia's autarkic relative price of guns or the world relative price of roses? (ii) If the world relative price of guns falls, will Australia be better off or worse off? What if the world relative price of guns rises? Explain.
Price leadership is a form of explicit collusion where one firm in an oligopoly announces a price change and expects all other firms to follow suit
Indicate whether the statement is true or false
Approximately __________ of the impact of monetary policy on GDP after one year stems from the effective of changes in wealth on consumer spending
A) 10 percent B) 25 percent C) 50 percent D) 75 percent
When firms in a price-taker market are temporarily able to charge prices that exceed their production costs,
a. the firms will earn long-run economic profit. b. additional firms will be attracted into the market until price falls to the level of per-unit production cost. c. the firms will earn short-run economic profits that will be offset by long-run economic losses. d. the existing firms must be colluding or rigging the market, otherwise, they would be unable to charge such high prices.