If the United States imposes a tariff of $5 per bottle on French wine, the most likely effect will be to raise the:
A) price of wine in the United States by more than $5 per bottle.
B) price of wine in the United States by $5 per bottle.
C) price of wine in the United States by less than $5 per bottle, and lower the price of wine in France by less than $5 per bottle.
D) price of wine in the United States by less than $5 per bottle without affecting the price of wine in France.
Ans: C) price of wine in the United States by less than $5 per bottle, and lower the price of wine in France by less than $5 per bottle.
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The exchange rate: a. states the price of one currency in terms of another currency
b. is the rate at which one country's money is flowing to a second country. c. is closely related to the concept of comparative advantage. d. is closely related to the concept of absolute advantage.
What happened to the peso when the Argentine government succumbed to the market forces in 2002?
a. Revalued b. Devalued c. Depreciated d. Appreciated