When the small home nation imposes a tariff of $10, the domestic price:
a. rises by more than $10.
b. rises by $10.
c. rises by less than $10.
d. does not change.
Ans: b. rises by $10.
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In 1935 the basic component of the present-day government-managed insurance program was established. It is known as
a. Medicare b. Medicaid c. Social Security d. AFDC e. food stamps
Refer to the tables. If these two nations specialize on the basis of comparative advantage:
Answer the question on the basis of the following production possibilities tables for two countries, Latalia and Trombonia:
A. Trombonia will produce beans and Latalia will produce pork.
B. Trombonia will produce both beans and pork.
C. Latalia will produce both beans and pork and Trombonia will produce neither.
D. Latalia will produce beans and Trombonia will produce pork.