The primary difference between an import tariff and an import quota is that
a. tariffs cause prices to rise, but quotas do not
b. quotas cause prices to rise, but tariffs do not
c. tariffs result in a net welfare loss, but quotas do not
d. quotas result in a net welfare loss, but tariffs do not
e. tariff revenues go to government, but quotas benefit those with the right to sell foreign goods domestically
E
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The IS curve would be vertical if
A) the government's budget was balanced. B) autonomous expenditures were insensitive to the interest rate. C) the demand for money was insensitive to the interest rate. D) the government increased the money supply.
The price of a stock will increase, ceteris paribus, when
A. Future earnings expectations decrease. B. Terrorists cause people to be fearful. C. Consumer confidence increases. D. The interest rate increases.
According to the graph shown, what does P on the y-axis stand for?
A. Price of GDP B. Inflation rate C. Average price level D. Price of Y
What is the reason for the law of increasing opportunity costs?
What will be an ideal response?