Which of the following is a similarity between the impact of import quotas and the impact of tariffs?
A. Both increase the prices paid by American buyers.
B. Both increase profitability for the foreign sellers.
C. Both increase the net prices received by foreign sellers.
D. Both increase tax revenues for the U.S. government.
A. Both increase the prices paid by American buyers.
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Universities tend to set tuition high and then, through financial aid, effectively charge each student a different price for education. Financial aid statements allow the university to determine the student's financial status and set an appropriate price to charge the student. This situation is an example of
a. first-degree price discrimination. b. second-degree price discrimination. c. third-degree price discrimination. d. a two-part tariff.
A problem with official U.S. poverty data is that they
a. omit the rural poor b. do not account for inflation c. omit in-kind transfers such as food stamps d. do not reflect changes in the cost of living e. omit dividends and interest
Why does a change in GDP affect unit costs and the price level?
a. as GDP increases, productivity increases. b. as GDP increases the price of non-labor inputs increases and the nominal wage tends to increase. c. as GDP decreases, there are efficient gains d. as GDP increases, economies of scale allow for lower unit costs. e. as GDP increases the price of non-labor inputs decreases and the nominal wage tends to increase.
If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is
a. cyclical unemployment amounting to 0.5 percent of the labor force. b. frictional unemployment amounting to 0.5 percent of the labor force. c. structural unemployment amounting to 0.5 percent of the labor force. d. search unemployment amounting to 0.5 percent of the labor force.