Suppose the United States reduced the tariff on digital camera, allowing foreign-produced cameras to more freely enter the U.S. market. Which of the following would most likely occur?
a. The price of cameras to U.S. consumers would increase, and the demand for U.S. export products would rise.
b. The price of cameras to U.S. consumers would fall, and the demand for U.S. export products would fall.
c. The price of cameras to U.S. consumers would increase, and the demand for U.S. export products would fall.
d. The price of cameras to U.S. consumers would fall, and the demand for U.S. export products would rise.
D
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Suppose you bought a ticket to a football game for $30 and that you place a $35 value on seeing the game. If you lose the ticket, then what is the maximum price you should pay for another ticket? Assume that losing the ticket does not alter how you value it
a. $5 b. $30 c. $35 d. $65
Which of the following is a widely used measure of the standard of living?
(a) Nominal output per person employed; (b) Nominal output per head of population; (c) Real income per head of population; (d) Real output per unit of capital.
Which of the following represents a long-run adjustment?
A. A farmer uses an extra dose of fertilizer on his corn crop. B. Unable to meet foreign competition, a U.S. watch manufacturer sells one of its branch plants. C. A steel manufacturer cuts back on its purchases of coke and iron ore. D. A supermarket hires four additional clerks.
Under perfect competition
A. economic profits are greater than accounting profits. B. the most efficient output is always the most profitable level of output. C. the firms demand and marginal revenue curves are equal only in the short run. D. economic profits are always zero in the long run.