According to the graph, what is the reduction in U.S. lumber consumption as a result of the tariff?
a. 700,000 board feet
b. 100,000 board feet
c. 200,000 board feet
d. 300,000 board feet
Answer is b. 100,000 board feet
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An international financial crisis can be precipitated when
A) the rate of money supply growth is not the same in all nations. B) newly-acquired political freedom in a country leads some interest groups to form a coalition limiting competition. C) many international investors look at the behavior of a few large investors to determine when funds should be withdrawn from a particular country. D) there is an increase in portfolio investment.
"The price of digital cameras fell because of improvements in production technology. As a result, the demand for non-digital cameras decreased
This caused the price of non-digital cameras to fall; as the price of non-digital cameras fell the demand for non-digital cameras decreased even further." Evaluate this statement. A) The statement is false because the demand for non-digital cameras would increase as the price of digital cameras fell. B) The statement is false because digital camera producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits. C) The statement is false. A decrease in the price of digital cameras would decrease the demand for non-digital cameras, but a decrease in the price of non-digital cameras would not cause the demand for non-digital cameras to decrease. D) The statement is false because it confuses the law of demand with the law of supply.