Import tariffs increase total surplus, whereas import quotas decrease total surplus
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Table 16-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017, which of the following will be higher than if Congress and the president had taken no action? A) real GDP and potential GDP B) real GDP and the inflation rate C) real GDP and the unemployment rate D) potential GDP and the inflation rate
The process of a government intervening to maintain the value of their exchange rate after shock to their economy is known as
A) sterilization. B) preventative therapy. C) beggar-thy-neighbor policies. D) the liquidity effect.
Based on the graphic showing the Lorenz Curve, if income distribution fell on the line of perfect income equality, what percentage of total income would the first 40 percent of households receive?
a. 3.8
b. 9.2
c. 13.0
d. 40.0
The marginal principle ________ to private goods with external benefits because ________.
A. does apply; the efficient quantity is that quantity for which the marginal social benefit equals the marginal cost B. does apply; the efficient quantity is that quantity for which the marginal private benefit equals the marginal cost C. does not apply; the efficient quantity is a quantity greater than the quantity for which the marginal private benefit equals the marginal cost D. does not apply; it is a principle that governs private markets with no externalities