You have decided to purchase, directly from the French manufacturer, a helicopter that costs 800,000 euros. At the equilibrium exchange rate between dollars and euros in Figure 36.1, this purchase will cost you

If a tariff of $10 has no effect on the world price, the optimal tariff on that product

A) is $10. B) is zero. C) is higher than $10. D) depends upon the amount of government revenue collected.

If a firm buys its labor in a competitive market, then in the short run, a decrease of the demand for the firm's product will cause the firm to

A) offer a higher wage. B) hire fewer workers. C) hire more workers. D) offer a lower wage.