A tariff imposed on imported shoes will cause the domestic price of shoes to ________ and the domestic production of shoes to ________.

A. increase; decrease
B. decrease; decrease
C. increase; increase
D. decrease; increase


Answer: C

Economics

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A) decreases its value of marginal product of labor. B) increases its demand for labor. C) increases its supply of labor. D) None of the above answers is correct.

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Suppose Orange Inc sells MP3 players and initially has monopoly power because there are only a few close substitutes available to consumers

As more types of MP3 players are introduced into the market, the demand facing Orange becomes ________ elastic and the Lerner index achieved by the firm in this market ________. A) less, declines B) less, increases C) more, declines D) more, increases

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Profit is maximized at the rate of output where marginal revenue exceeds marginal cost by the greatest amount

Indicate whether the statement is true or false

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Which of the following is true?

A) Reserves = required reserves - excess reserves. B) Reserves - required reserves = excess reserves. C) Reserves = required reserves + excess reserves. D) b and c E) a and b

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