Tariffs ________ a deadweight loss and import quotas ________ a deadweight loss
A) create; create
B) do not create; create
C) create; do not create
D) do not create; do not create
A
You might also like to view...
Which of the following is TRUE regarding the real interest rate?
I. The real interest rate is the opportunity cost of borrowed funds. II. The real interest rate equals the nominal interest rate adjusted for inflation. A) I B) II C) both I and II D) neither I nor II
According to the Taylor rule, if output is above its full-employment level and inflation is less than 2%
A) the Fed should raise the Fed funds rate above 4%. B) the Fed should reduce the Fed funds rate below 4%. C) the Fed should make the Fed funds rate exactly 4%. D) what the Fed should do is ambiguous.
In the IO perspective it is important to enter an industry with
a. High barriers to entry b. Differentiated products c. Small number of competing firms of different sizes d. All of the above
What are the three main types of unemployment?
A) frictional, seasonal, and cyclical B) temporary, permanent, and volunteer C) cyclical, structural, and temporary D) structural, frictional, and cyclical