Which of the following statements about tariffs is true?
A. The revenue gained from tariffs equals the total cost that tariffs impose on consumers.
B. The costs of tariffs are proportionately higher for high-income groups than for low-income groups.
C. U.S. consumers lose more from tariffs than U.S. producers gain.
D. U.S. producers gain more from tariffs than U.S. consumers lose.
Answer: C
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Which statement is true?
A. The economic problem is limited to poverty. B. Scarcity is no longer an economic problem in the United States. C. If we all had more money there would be less scarcity. D. None of these statements are true.
Demand-pull inflation results from continually increasing the quantity of money, which leads to continually
A) decreasing potential GDP. B) increasing potential GDP. C) increasing aggregate supply. D) decreasing aggregate demand. E) increasing aggregate demand.
If inventories decline by more than analysts predict they will decline, this implies that
A) actual investment spending was equal to than planned investment spending. B) there is no relationship between actual investment spending and planned investment spending. C) actual investment spending was greater than planned investment spending. D) actual investment spending was less than planned investment spending.
Which approach to calculating GDP would be best to compare consumer activity versus government purchases?
A. The value-added approach B. The expenditure approach C. The income approach D. Any of these measurements will allow that comparison equally well.