What are the effects of a tariff on a good?
What will be an ideal response?
A tariff taxes the imports of a good, which tends to reduce the quantity of imports and raise price. Due to the higher price, the domestic quantity supplied of the good increases and the domestic quantity demanded decreases. The increase in quantity supplied will be less than the decrease in quantity supplied by imports because of the reduction in quantity demanded. Consumers are worse off while domestic suppliers of this good are better off.
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Answer the following questions true (T) or false (F)
1. In recent years, economists have come to rely more on the establishment survey rather than the household survey to analyze current labor market statistics. 2. The labor force participation rates of men have gradually increased since 1948. 3. Eliminating frictional unemployment would be good for the economy.
At an output level of zero, total cost is zero.
Answer the following statement true (T) or false (F)
John is trying to decide whether to expand his business or not. If he continues his business as it is, with no expansion, there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000. If he does expand, there is a 30 percent chance he will earn $100,000, a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000. It will cost him $150,000 to expand. John expects the value of his earnings to be ________ if he expands and ________ if he does not expand.
A. $320,000; $200,000 B. $170,000; $50,000 C. -$30,000; $200,000 D. $120,000; $200,000
An example of the "Tragedy of the Commons" is litter in the picnic area of a local park
a. True b. False Indicate whether the statement is true or false