Vertical equity refers to a tax system in which individuals with similar incomes pay similar taxes
a. True
b. False
Indicate whether the statement is true or false
False
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In 2002 the steel industry successfully lobbied Congress to impose a tariff of 8 to 30 percent on foreign steel. Which of the following is an unintended consequence of this tariff?
(a) U.S. steel firms were protected from the price cutting efforts of foreign competitors benefiting from governmental support in their countries. (b) U.S. steel firms could charge higher steel prices in order to boost profits. (c) Many steel-using firms in the U.S. went out of business and about 200,000 workers lost their jobs to higher steel prices. (d) American steel workers kept their jobs.
An example of a nontradable good is:
A. a lead-painted toy from China. B. a stack of firewood from Montreal, Canada. C. a dish of handmade pasta in Lucca, Italy. D. All of these would be considered a nontradable good.
Service sector outputs could be expected to increase in price less than industrial sector outputs as an economy grows
a. True b. False Indicate whether the statement is true or false
If the world price of coffee is lower than Colombia's domestic price of coffee without trade, then Colombia
a. should import coffee. b. has a comparative advantage in coffee. c. should produce just enough coffee to satisfy domestic demand. d. should produce no coffee domestically.