All of the following questions or statements regarding tariffs are positive statements except:
A) Economic models can be used to estimate the dollar amounts gained by the winners from the imposition of a tariff.
B) Economic analysis can, by itself, decide whether a tariff proposal should be enacted.
C) Economic analysis can show the size of the loss of economic efficiency from the imposition of a tariff.
D) Economic models can be used to estimate the dollar amounts lost by the losers from the imposition of a tariff.
Answer: B
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Which one of the following will shift the Israeli consumption curve upward?
a. higher interest rates in Israel b. an increase in real assets in Israel c. expectations of future Israeli economic growth d. lower capacity utilization rates in Israel e. a tax increase in Israel
The circular-flow diagram is a
a. visual model of the economy. b. visual model of the relationships among money, prices, and businesses. c. model that shows the effects of government on the economy. d. mathematical model of how the economy works.
Automobile insurance companies insure both safe and unsafe drivers. Ideally they would like to be able to charge different premiums to each to reflect the cost differences in insuring both types of drivers
What type of economic problem is this and how might insurance companies deal with it?
Refer to the above figure. What are the price and quantity if this monopolist is required to use average cost pricing?
A) P5, Q1 B) P3, Q3 C) P2, Q1 D) P1, Q4