A tax imposed by a country on an imported good or service is called a

Other things the same, if the price level is higher than expected, then some firms believe that the relative price of what they produce has

a) increased, so they decrease production. b) decreased, so they increase production. c) decreased, so they decrease production. d) increased, so they increase production.

The U.S. exports computers with a domestic price of $100,000 and the yen/dollar exchange rate is 120 on January 1, 2003. On January 1, 2004 the yen/dollar exchange rate is 125

What is the yen price of the computers on January 1, 2003? What is the yen price of the computers on January 1, 2004?