If a country imposes a $10 tariff on a foreign monopolist, the price received by the monopolist, net of the tariff, will:
a. fall by $10.
b. fall by less than $10.
c. fall by more than $10.
d. fall by $0.
Ans: b. fall by less than $10.
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A decrease in demand would be represented by
A) the price of a good going up. B) a downward movement along the demand curve. C) an upward movement along the demand curve. D) a shift of the demand curve to the left.
Refer to the table above. Based on the given information, we see that:
The table below shows the output (either machines or wine) that each unit of input in France and Germany can produce:
A. France has an absolute advantage over Germany in producing either output
B. Germany has an absolute disadvantage in producing wine
C. Germany has no absolute advantage over France in producing either output
D. France will see no economic basis for trading with Germany