As a result of importing a good, domestic consumers ________ the quantity consumed and the price of the good ________
A) increase; rises
B) decrease; rises
C) decrease; falls
D) increase; does not change
E) increase; falls
E
You might also like to view...
How would each of the following events affect the level of employment and the real wage rate?
(a) A tremendous boom occurs in the stock market, increasing people's wealth by $100 billion overnight. (b) A major government loan-guarantee program goes bust, losing $500 billion. To pay off the loss, the government announces that tax rates will rise 30% in the future. (c) A nuclear mishap contaminates all auto plants in the Detroit area, destroying their capital. (d) Medical science cures the common cold, causing fewer work days lost due to illness, thus greatly increasing labor productivity.
If a central bank reduced inflation by 2 percentage points and that made output fall by 3 percentage points for 2 years and the unemployment rate rise from 3 percent to 5 percent for 2 years, the sacrifice ratio is
a. 1. b. 2. c. 3. d. None of the above is correct.
Suppose there are two small island countries: Avarice, which is populated by people who are completely self-interested, and Altruism, which is populated by people who have adopted social norms of generosity and cooperation. Commitment problems will be:
A. largely avoided in Altruism, but prevalent in Avarice. B. prevalent on both islands. C. largely avoided in Avarice, but prevalent in Altruism. D. largely avoided on both islands.
When the value of a currency experiences exchange-rate appreciation, its value:
A. increases relative to the value of another currency. B. has experienced inflation relative to other currency. C. decreases relative to the value of another currency. D. can buy more goods and services in its own country.