Author Question: If opening up international trade resulted in the U.S. importing ballpoint pens, what would tend to ... (Read 110 times)

Wadzanai · **on:** Jun 30, 2018

If opening up international trade resulted in the U.S. importing ballpoint pens, what would tend to happen to the U.S. price of ballpoint pens?
a. The domestic price will fall.
b. The domestic price will rise.
c. The domestic price will remain constant.
d. It is impossible to predict the impact.

Question 2

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