Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 44, Problem 3MCQ
To determine
The correct option for the resultant from US tariff on imported cars.
Expert Solution & Answer
Answer to Problem 3MCQ
Option b is correct.
Explanation of Solution
Explanation for the correct option:
b.
Due to US tariffs the product cost that is imported from abroad increases. If a car is imported, then US tariffs will increase its
Explanation for incorrect options:
a.
Profit for US car manufacturers will remain unaffected. Therefore, option a is the incorrect answer.
c.
Fewer cars would be imported due to higher prices. Therefore, option c is incorrect.
d.
Due to the high prices of imported cars, not everyone can afford imported cars which will not affect the
e.
Due to high prices because of US tariffs cars from all sources cannot be traded. Therefore, option e is incorrect.
Economics Concept Introduction
International trade: International trade is an exchange of goods and services across nations. This is due to globalization and
Chapter 44 Solutions
Krugman's Economics For The Ap® Course
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