A major difference between a tariff and a quota is that a tariff
What will be an ideal response?
typically generates tax revenue, while a quota does not
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In which system are decisions made by thousands of people who have information about resources, production technology and consumer desires?
A) market system B) socialist system C) centrally planned system D) command system
The federal government granted 200 million acres of land to railroads. Which of the following statements presents accurate information about these land grants?
a. The railroads were required to return 1/3 of the profits from the sale of this land to the federal government. b. The alternate section provision allowed state governments to purchase portions of the land grants from the railroads at reduced prices. c. The system of land grant subsidies were difficult to eliminate because of public opposition. d. Congress required railroad companies that received land grants to transport mail, troops and government property at reduced rates.
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. For many years the two countries traded, each completely specializing according to their respective comparative advantages. Now, however, war has broken out between them and all
trade has stopped. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. The war has caused the combined yearly output of the two countries to decline by a. 10 units of corn and 10 units of wheat. b. 20 units of corn and 20 units of wheat. c. 30 units of corn and 30 units of wheat. d. 40 units of corn and 40 units of wheat.
Changes in the CPI overstate the true inflation rate due to four? "biases." If apple prices rise rapidly during the month while orange prices? fall, consumers will reduce their apple purchases and increase their orange purchases. Which of the four biases is concerned with this consumer? behavior?
A. the increase in quality bias B. the substitution bias C. the new product bias D. the outlet bias