Suppose That at the Current World Price Bananas Are Imported

question 110

Multiple Choice

Suppose that at the current world price bananas are imported into Canada. Suppose also that domestic supply is perfectly inelastic and domestic demand has unit elasticity. If Canada were to place a tariff on imported bananas, the

• A)price of bananas in Canada would rise, but total domestic expenditures would fall.
• B)quantity imported would be unaffected.
• C)quantity imported would rise.
• D)price of bananas in Canada would rise, but total domestic expenditures would be unaffected.
• E)revenues of the foreign exporters of bananas would rise.

Calculate net worth and understand its importance in personal financial planning.

Analyze energy and utility usage to make cost-effective decisions.

Understand and calculate electric rates and compare them to ascertain cost-effectiveness.

Calculate the cost of energy usage given a specific rate and energy consumption.

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Definitions:

Marginal Tax Rates

The rate of tax applied to the next dollar of taxable income, which increases as income rises within progressive tax systems.

Dual-Earner Families

Dual-earner families are those where both partners in a household engage in paid employment.

Earnings Differential

The difference in wages or income between two groups due to various factors such as education, experience, or gender.

Marginal Productivity

The additional output that results from using one more unit of a factor of production, holding other factors constant.