Recall the Application about the impact tariffs have on lower income households to answer the following question(s). Economists have found that tariffs in the United States fall most heavily on lower-income consumers. In the United States, tariffs are very high on textiles, apparel items and footwear, and within these categories the highest tariffs fall on the cheapest products. In general, to protect U.S. industries, tariffs are highest on labor-intensive goods.If the tariffs on textiles, apparel items, and footwear mentioned in the Application were replaced by equivalent voluntary export restraints (VERs), who would benefit the most?
A. low-income consumers
B. high-income consumers
C. the U.S. government
D. the foreign manufacturer
Answer: D
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Which of the following is true of the balance of payments accounts?
a. It records only the trade in tangible assets between any two nations. b. It is a record of a country's merchandise trade. c. It records the total external debt used to finance government budget deficits. d. It is recorded biannually in most developed countries. e. It records a country's trade in goods, services, and financial assets with the rest of the world.
Which of the following is most consistent with the basic postulate of economics: changes in incentives exert a predictable impact on human behavior?
What will be an ideal response?
Which of the following is most likely to influence a household’s level of consumption?
a. total investment spending b. government spending c. amount of disposable income d. ratio of exports to imports
Total planned expenditures in a closed economy are equal to
A. investment + saving + transfers. B. consumption + savings + transfers + investment. C. consumption + investment + government expenditures. D. saving + investment + government expenditures.