Assume that a country imposes a tariff in order to gain a price advantage on an item. What is the typical response from the exporting country?
A. It accepts the situation and does nothing about it.
B. It seeks greater efficiency in order to offset the tariff.
C. It refuses to sell to the country that imposes the tariff.
D. It retaliates by imposing tariffs or quotas on items from the other country.
Answer: D
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In the figure above, the shift in the supply of loanable funds curve from SLF1 to SLF2 could be the result of
A) an increase in expected rate of profit. B) a decrease in disposable income. C) an increase in expected future disposable income. D) an increase in the real interest rate. E) a decrease in wealth
If the average variable cost of a firm is falling, then the:
a. average fixed cost must be rising. b. marginal cost must be falling. c. marginal cost must be rising. d. marginal cost lies below the average variable cost. e. marginal cost lies above the average variable cost.