Answer the following statement(s) true (T) or false (F)
1.Tariffs are taxes on imported goods that make up the difference between the sale price of an item and the cost of its production.
2.On balance, consumers lose more than producers and the government gain from the imposition of a tariff.
3.One argument for tariffs is that temporarily protecting a nascent industry from foreign competition gives the young industry a chance to grow.
4.Tariffs protect jobs in the affected industry and reduce domestic unemployment overall.
5.The World Trade Organization monitors and enforces trade agreements.
1.false
2.true
3.true
4.false
5.true
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Which of the following equations is true of a profit-maximizing firm?
A) Wage = value of worker's marginal product B) Wage = worker's marginal product C) Wage = worker's total product D) Wage = average product of all workers
Seigniorage is government revenue raised by
A) a tax on transactions. B) issuance of treasury bonds. C) issuance of money. D) lump-sum taxation.
Fiscal policy is:
A. the decisions that affect the available money supply in the economy. B. government decisions about the level of the interest rate in the economy. C. government decisions about the level of taxation and public spending. D. congressional budget office decisions.
Federal Reserve notes are
A. both an asset and a liability to the Federal Reserve System. B. a liability of the Federal Reserve System. C. a liability to the United States Treasury. D. an asset to the Federal Reserve System.