Suppose the United States allowed Japan free trade privileges in the U.S. market. What would happen to the equilibrium price and total quantity of VCRs bought and sold in the U.S. market?
Answer to relevant QuestionsEconomists assume that our wants are unlimited. How does that assumption relate to the basic questions relating to economics? Suppose the United States imposed a $100 tariff on each Japanese VCR imported. What would happen to the equilibrium price and total quantity bought and sold in the United States? Each nation has its own currency. Americans have the dollar, Italians have the euro, and the British have the pound. So how can they trade? Some economists argue that our budgetary defi cits contribute to our balance of payments prob lems. How do they make their case? Describe the natural resource trap.
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