Market clearing prices in a market system act as
A) a signaling device.
B) a direct measure of resource costs.
C) a way for producers to advertise.
D) a legally determined rationing device.
A
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Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed
If the government wanted to cut off all international trade without changing the quota, it could allow the quota amount of 3000 trucks in at no tariff and then charge a tariff on all imports above the quota amount. What tariff would accomplish the goal? A) $0. B) $5,000 C) $7,500 D) $10,000 E) $20,000
When the real exchange rate for the dollar depreciates, U.S. goods become
a. less expensive relative to foreign goods, which makes exports rise and imports fall. b. less expensive relative to foreign goods, which makes exports fall and imports rise. c. more expensive relative to foreign goods, which makes exports rise and imports fall. d. more expensive relative to foreign goods, which makes exports fall and imports rise.