Currently, the United States has an import quota on the amount of sugar that is allowed to be imported into the United States
What would happen to the price of sugar in the United States if the import quota was removed? What would happen to U.S. consumption and U.S. production of sugar?
If the import quota is removed, the price of sugar in the United States would fall, U.S. consumption of sugar would increase, and U.S. production of sugar would decrease.
You might also like to view...
If producers cannot afford the fees for pollution rights,
a. they will pollute b. they will buy pollution rights c. they will sell pollution rights d. they will have to find a cheaper way to deal with their pollution e. they will not be able to use their pollution rights
In order to practice price discrimination successfully, a monopolist must ensure that there is no resale of the product
a. True b. False Indicate whether the statement is true or false
This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope.
The marginal cost of litter removal ________ due to ________.
A. decreases; diminishing returns to inputs B. increases; increasing opportunity costs C. increases; the Coase Theorem D. decreases; gains from specialization
Who answers the key economic questions in a centrally planned government?
(A) Government (B) Firms (C) Consumers (D) Households