Author Question: Which of the following would be expected if the tariff on foreign-produced automobiles was ... (Read 62 times)

danielfitts88 · **on:** Jun 30, 2018

Which of the following would be expected if the tariff on foreign-produced automobiles was increased?
a. The domestic price of automobiles would fall.
b. The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise.
c. The number of unemployed workers in the domestic automobile industry would rise.
d. The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.

Question 2

One of the negative impacts of export subsidy is that:
a. the price of the domestic good increases in the world market.
b. the domestic supply of the goods increases more than proportionately than increase in demand.
c. the domestic cost of production of the exportable increase.
d. it results in a general deflation and hence the domestic producers incur losses.
e. the domestic consumers are harmed as the subsidies are financed by taxing them.