Which of the following is likely to happen if the government of a country lowers import tariffs?
A) The domestic producers will be safe from foreign competition.
B) The revenue earned by the government will fall.
C) The price of imported goods will rise in the domestic market.
D) The volume of the country's imports will fall.
B
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For this question, assume that the economy is initially operating at the natural level of output. An increase in consumer confidence will cause
A) a reduction in the real wage in the medium run. B) an increase in the real wage in the medium run. C) no change in the real wage in the medium run. D) ambiguous effects on the real wage in the medium run.
A consumer who has a limited budget will maximize utility or satisfaction when the:
A. ratios of the marginal utility of each product purchased divided by its price are equal. B. total utility derived from each product purchased is the same. C. marginal utility of each product purchased is the same. D. price of each product purchased is the same.