What are some of the long-run costs of tariffs?
What will be an ideal response?
Increased rent seeking, slower innovation, possible loss of exports due to retaliation
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Refer to Scenario 6.1. Suppose the friends are forced by government to combine their businesses and share what they make. With this revision to the scenario, the dominant strategy is for Tasha to work ________ and for Gloria to work ________
A) extremely hard; extremely hard B) extremely hard; somewhat hard C) somewhat hard; extremely hard D) somewhat hard; somewhat hard
Countries tend to export different goods and services because of:
a. differences in their comparative advantage. b. differences in their tastes and technological needs. c. differences in income. d. similarities in resource endowment. e. differences in the exchange rates.
Which of the following statements about the Social Security (OASDI) program is FALSE?
A. When an insured worker dies, benefits continue for widows or other dependents. B. Benefits are based on need. C. Benefits are an intergenerational transfer program from those who work to those who don't work. D. Benefits are paid to individuals who would be financially secure in their absence.
Select the term that matches this definition: A lump sum of money which can be put towards one specific good.
a. Buy One, Get One Free Deal b. Voucher c. Cash Transfer d. In-kind transfer e. Standard Gamble