To be effective, an import quota must
a. reduce the price and increase the quantity of imports
b. set the price of the imported good higher than the domestic equilibrium price
c. restrict imports to less than would be imported under free trade
d. restrict imports to less than exports in trade with that particular country
e. be directed at the product of a specific country
C
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The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. An import quota of 35 units would
A) cause consumer surplus to fall by "g." B) cause social welfare to fall by $35. C) increase domestic producer surplus by "g." D) have no effect.
If unemployment and inflation move inversely, then we can infer that business fluctuations are
a. from the demand side. b. from the supply side. c. from both the demand and supply side. d. purely random events.
If the public correctly perceives that the central bank will reduce inflation, then
a. the short-run Phillips curve shifts right, and the sacrifice ratio will be higher. b. the short-run Phillips curve shifts right, and the sacrifice ratio will be lower. c. the short-run Phillips curve shifts left, and the sacrifice ratio will be higher. d. the short-run Phillips curve shifts left, and the sacrifice ratio will be lower.
An increase in marginal tax rates will
What will be an ideal response?