Suppose an Import-Competing Firm Is Imperfectly Competitive

question 67

Multiple Choice

Suppose an import-competing firm is imperfectly competitive. Replacement of an export tariff with an import quota that yields the same level of imports will ________ market price, ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

• A) have no effect on; have no effect on; have no effect on; decrease; decrease
• B) increase; increase; increase; decrease; have an ambiguous effect on
• C) decrease; decrease; increase; decrease; increase
• D) increase; increase; decrease; decrease; decrease
• E) increase; have no effect on; decrease; decrease; increase

Understand the historical trends in federal spending on defense and healthcare.

Comprehend the total government spending as a percentage of the U.S. economy.

Recognize the changes in real federal spending per person over time.

Analyze changes in the composition of federal spending over the last few decades.

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