Which of the following scenarios describes a tariff in the Tea Republic?
a. Commercial tea producers received a business tax credit of $2,500 per year.
b. A fee of $1 per pound was charged on foreign tea entering the country for sale.
c. A federal program offered $2,000 to new tea growing and processing operations.
d. The government received $0.05 for every cup of brewed tea sold to consumers.
b. A fee of $1 per pound was charged on foreign tea entering the country for sale.
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If a country's imports of goods and services exceeds its exports, ________.
A. GDP equals the sum of consumption, investment, and government purchases B. net exports are positive C. GDP is less than the sum of consumption, investment, and government purchases D. GDP exceeds the sum of consumption, investment, and government purchases
One can say with certainty that equilibrium price will decline when supply:
A. and demand both decrease. B. increases and demand decreases. C. decreases and demand increases. D. and demand both increase.
When calculating the price elasticity of demand, which of the following conditions must be satisfied?
A) All other factors that influence demand must be held constant. B) Prices of related goods must be held constant but all other factors must be allowed to vary. C) Prices of related goods must be allowed to vary but all other factors must be held constant. D) All other factors than influence demand must be allowed to vary.
Liquidity can be defined as the
a. cash value of money. b. value of money adjusted for inflation. c. value of fiat money when used for spending. d. ease with which an asset can be converted to a spendable asset.