When a tariff is imposed, the supply curve for the imported good
A. becomes perfectly inelastic.
B. does not change.
C. shifts downward and to the right.
D. shifts upward and to the left.
Answer: D
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A person starting to drive more recklessly after signing a contract with an automobile insurance company is an example of
A) adverse selection. B) moral hazard. C) signaling. D) screening.
Economic choice and competitive behavior are the result of
a. basic human greed. b. poverty. c. private ownership of resources. d. scarcity.
Which of the following statements is true?
A. Marginal revenue product is the extra revenue generated to the firm from the production of one more unit of output. B. Marginal factor cost is the extra cost to a firm of employing one more unit of a factor of production. C. The demand curve for a perfectly competitive employer is horizontal at the market wage rate. D. The supply curve of labor is upward sloping because of the law of diminishing marginal productivity.
Suppose Bob withdraws money from his checking account and deposits it into his savings account. What happens to M2?
A. It decreases. B. It increases. C. It stays the same. D. The effect is unknown.