The political popularity of a tariff on imported goods that compete with products of a well-established domestic industry is
a. surprising since one would expect the political power of consumers to override the interests of even a well-established domestic industry.
b. surprising since one would expect the economic harm resulting from tariffs to be well understood by voters.
c. not surprising since such a tariff would generally benefit an easily recognized interest group at the expense of uninformed, uninterested consumers.
d. not surprising since the tariff enables domestic producers and consumers to gain at the expense of foreigners.
C
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A ________ is a provision that restricts or specifies certain activities that a borrower can engage in
A) residual claimant B) risk hedge C) restrictive barrier D) restrictive covenant
Which of the following market structures describes an industry in which a group of firms formally agree to control prices and output of a product?
a. Perfect competition. b. Monopoly. c. Oligopoly. d. Cartel. e. Monopolistic competition.
Between March 2001 and November 2002, the Fed reduced the federal funds rate from 5 percent to just above 1 percent. The Fed's purpose was to:
A. prevent rising inflation. B. reduce the public debt. C. promote recovery from recession. D. strengthen the international value of the dollar.
The minimum efficient scale of production is the level of production required for the
A. variable cost curve to reach its minimum. B. average cost curve to reach its minimum. C. long run average curve to reach its minimum. D. marginal cost curve to reach its minimum.