If the imposition of a tariff on a commodity alters the relative international prices of the imposing country's exports to its imports, it is referred to as the
A. production effect of the tariff.
B. terms-of-trade effect of the tariff.
C. total price effect of the tariff.
D. consumption effect of the tariff.
Answer: B
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In the above figure, the economy is at point A and the money wage rate rises by 10 percent. If the price level is constant, firms will be willing to supply output equal to
A) less than $16.0 trillion. B) $16.0 trillion. C) more than $16.0 trillion. D) Without more information, it is impossible to determine which of the above answers is correct.
If a U.S. firm produces cars in Mexico, that production should count towards
A) Mexico's GNP. B) U.S. GDP. C) U.S. GNP. D) It will not affect either U.S. GNP or U.S. GDP.
A demand curve with continuously changing slope over all quantity values will always have a constant price elasticity of demand.
Answer the following statement true (T) or false (F)
You are given the following market data for Venus automobiles in Saturnia
Demand: P = 35,000 - 0.5Q Supply: P = 8,000 + 0.25Q where P = Price and Q = Quantity. a. Calculate the equilibrium price and quantity. b. Calculate the consumer surplus in this market. c. Calculate the producer surplus in this market.