If IBM Manufactures a Computer in the United States and Sells

question 105

Multiple Choice

If IBM manufactures a computer in the United States and sells it to a French business firm in Paris, it will cause an increase in

• A)net exports.
• B)imports.
• C)both investment and net exports.
• D)government expenditures.
• E)consumption.

Examine the role of government programs in affecting market prices and distribution of economic welfare.

Understand the concepts of tax incidence and how it affects market outcomes.

Analyze factors determining the actual benefit of government subsidies.

Evaluate the effects of market interventions, such as price controls, on supply and demand and overall economic welfare.

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