When the Home Country Is Small, How Will an Increase

question 164

Multiple Choice

When the home country is small, how will an increase in a tariff
Protecting a home monopolist affect the home country's demand
Curve?

• A)There will be an upward parallel shift in the demand curve.
• B)The demand curve will pivot upwards from its vertical intercept.
• C)There will be a downward parallel shift in the demand curve.
• D)The demand curve will pivot downwards from its vertical intercept.

---

Definitions:

Salaries

Employee pay based on a specified amount rather than an hourly rate.

Interest

The cost of borrowing money or the return on invested funds, typically expressed as a percentage rate over a period of time.

Capital Account

An account used to summarize the owner's equity in a business, including funds contributed by investors or profits retained in the business rather than distributed.

Income Sharing

A financial arrangement where profits or revenues are distributed among participants or partners, often seen in partnerships and joint ventures.