Import taxes are levied to generate revenue and encourage imports
a. True b. False
b
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A monopolist has the market demand and marginal cost schedules given in the above table. If the monopoly can perfectly price discriminate, what is the profit-maximizing level of output and price?
What will be an ideal response?
Economists use the term "potential output" to refer to ________
A) a level of output that has not yet been achieved B) the maximum level of output of which an economy is capable C) the sum of finished goods plus goods in production that will be finished within the year D) the level of output that occurs when all prices are fully adjusted E) none of the above
The net change in quantity demanded of a good following a price change
a. is equivalent to the substitution effect b. is equivalent to the income effect c. must decrease as marginal utility rises d. is negative only when the income effect is negative e. reflects both the substitution and income effects
Diversification puts "the law of large numbers" to work for you because it
A) eliminates all asset risk. B) reduces tax liabilities on earned dividends. C) increases the chance that a single bond will substantially improve the overall performance of your portfolio. D) lowers the chance that a reduction in the market value of a single asset like a corporate stock will significantly reduce your overall portfolio return.