A lump-sum tariff is:
A. a fixed fee that an importing firm must pay the domestic government in order to have the legal right to sell the product in the domestic market.
B. a restriction limiting the quantity of imported goods that can legally enter a domestic market.
C. the fee an importing firm must pay to the domestic government on each unit it brings into the domestic market.
D. None of the statements are correct.
Answer: A
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Suppose investors become more optimistic that the economy will be doing well over the next decade. How will the market for loanable funds as depicted in the accompanying graph be affected?
A. Supply will shift to the right from S1 to S2.
B. Supply will shift to the left from S2 to S1.
C. Demand will shift to the right from D1 to D2.
D. Demand will shift to the left from D2 to D1.
If people consume fewer bottles of orange juice as their income rises, orange juice is
A. an inferior good. B. a necessity. C. a normal good. D. an abnormal good.