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

Economics

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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.

Economics

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.

Economics

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)

Economics

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.

Economics