Recall the Application about the impact tariffs have on lower income households to answer the following question(s). Economists have found that tariffs in the United States fall most heavily on lower-income consumers. In the United States, tariffs are very high on textiles, apparel items and footwear, and within these categories the highest tariffs fall on the cheapest products. In general, to protect U.S. industries, tariffs are highest on labor-intensive goods.If the tariffs on textiles, apparel items, and footwear mentioned in the Application were replaced by equivalent voluntary export restraints (VERs), who would benefit the most?
A. low-income consumers
B. high-income consumers
C. the U.S. government
D. the foreign manufacturer
Answer: D
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The demand curve can be derived from indifference curves by varying the price of the commodity in question.
Answer the following statement true (T) or false (F)
Trade war occurs when, after a tariff is imposed, other countries retaliate with their own tariff
Indicate whether the statement is true or false
Between 1929 and 1933, nominal interest rates ___, and real interest rates ___
a. rose, rose b. rose, fell c. fell, rose d. fell, fell
The federal income tax began in the United States with the
a. Morrill Act of 1862. b. addition of the Bill of Rights to the Constitution in 1791. c. passage of the 16th Amendment to the Constitution in 1913. d. New Deal legislation of the 1930s.