An effective import quota is one that
a. reduces imports to zero
b. increases exports
c. reduces the price of an imported good below the world price
d. limits imports to less than what would be imported under free trade
e. reduces demand for a good to zero
D
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Use the following table for Country X to answer the next question. Column 1 of the table is the world price of a product, Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd). Assume the small-country model is applicable.PriceQddQsd$5.002004004.002503503.003003002.003502501.00400200At what world price will Country X import 100 units of the product?
A. $4.00 B. $2.00 C. $1.00 D. $3.00
Companies most likely use the foreign-exchange market to ________.
A) establish fair currency trading policies C) establish a global market presence D) diversify their hedge funds
Compared to businesses with market power, businesses in perfect competition will charge __________ prices and sell __________ output.
A. higher; less B. higher; more C. lower; less D. lower; more
If a major league baseball player would be willing to work for $700,000 per year and is currently being paid $1,200,000 per year, that player is earning an annual economic rent of
A. $1,900,000. B. $700,000. C. $500,000. D. $1,200,000.