The use of tariffs and quotas for trade protection results in
A. lower prices for domestic consumers.
B. less revenue for the government.
C. less rent-seeking activity.
D. less efficiency in the economy.
Answer: D
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Which of the following statements is true of open-market operations?
a. Open-market operations involve clearing checks b. Open-market operations involve lending money to member banks. c. Open-market operations involve accepting deposits from member banks. d. Open-market operations involve the Fed's purchase and sale of government securities. e. Open-market operations involve the Fed's purchase and sale of foreign exchange.
A loan is:
A. a financial asset that represents partial ownership of a company. B. a payment made periodically to all shareholders of a company. C. an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest. D. a promise by the bond issuer to repay the loan, at a specified maturity date, and to pay periodic interest at a specific percentage rate.
Refer to the graph shown. If this graph represents a competitive market, the equilibrium price and quantity will be:
A. $13.50 and 325, respectively. B. $10 and 500, respectively. C. $7 and 750, respectively. D. $7 and 325, respectively.
Arnold's nominal wage increased by 3%, and the prices of goods that Arnold buys increased by 5%. Arnold's real wage has
A. increased. B. decreased. C. remained constant. D. changed by 8%, but the direction of the change is ambiguous.