Which of the following is NOT correct about the effects of a tariff on an imported product?
A) Tariffs benefit domestic producers by raising price and domestic output.
B) Tariffs increase government revenue.
C) Tariffs mean higher prices and less consumption for consumers of the product.
D) Tariffs increase the efficiency of how resources are allocated.
D
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Which of the following would be included in the consumption component of total expenditure in the United States?
a. A citizen buying a new apartment in Colorado b. A citizen paying rent for an apartment in New York c. NASA buying a new satellite launch vehicle from another country d. The U.S. government selling submarines to another country
If a monopolistically competitive firm can increase its level of production and lower its average total cost of production at the same time then
a. the firm has a product-variety opportunity. b. the firm has excess capacity. c. the firm has a business-stealing opportunity. d. the firm is producing a quantity of output higher than its efficient scale of production.