If a country imposes a $10 tariff on a foreign monopolist, the domestic price will rise by:
a. more than $10.
b. $10.
c. less than $10.
d. $0.
Ans: c. less than $10
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Consider a nation experiencing the relationship illustrated by the short-run Phillips curve. An increase in both unemployment and inflation in this nation over the next ten years can be explained by:
a. a downward movement along the short-run Phillips curve. b. a series of outward shifts of the short-run Phillips curve. c. an upward movement along the short-run Phillips curve. d. a series of inward shifts of the short-run Phillips curve. e. a complete change in the slope of the Phillips curve.
You use $45,000 of your own money to start an espresso stand. During the first year you earn a 10% return on that investment. If the current interest rate is 8%, you earn an economic profit of
A. -$900. B. $100. C. $500. D. $900.