Which of the following would result from a tariff?

Which of the following would result from a tariff?
 a. An increase in government budget deficit
  b. An increase in domestic production
  c. A greater volume of international trade
  d. Increased domestic consumption
  e. Decrease in prices of the imported goods

QUESTION 2

A(n) _____ perceives the demand for its own output as horizontal at the market price, so it can produce as much or as little as it wants without affecting that price.
 a. oligopolist
  b. monopsonist
  c. monopolist
  d. perfect competitor

QUESTION 3

Above-normal profits earned by existing firms in a perfectly competitive market will eventually lead to:
 a. exit of the firms from the market.
  b. an increase in the market price of the good.
  c. entry of new firms into the market.
  d. a decrease in the aggregate supply.
  e. the existing firms emerging as price makers.

QUESTION 4

A market structure in which only one firm survives because of economies of scale:
 a. is called a structural monopoly.
 b. is called a patented monopoly.
 c. is called a natural monopoly.
 d. is called a government monopoly.

QUESTION 5

One important unintended consequence of the Smoot-Hawley Tariff Act was to:
 a. lessen the severity of the Great Depression by increasing exports.
  b. provide the federal government with an effective tool for exercising monetary policy.
  c. decrease the efficiency of domestic automobile production.
  d. cause other countries to retaliate and thus leading to a decline in exports.
  e. increase the U.S. government budget deficit by 15 million.

QUESTION 6

In a perfectly competitive market, the demand curve faced by each firm is:
 a. highly inelastic.
  b. perfectly elastic.
  c. perfectly inelastic.
  d. less elastic.