One of the reasons protectionists and government officials may favor using a quota instead of a tariff is
A. quotas create less market distortions than tariffs.
B. quotas give less power to politicians than tariffs.
C. quotas ensure that the quantities of imports are strictly limited.
D. quotas generate more revenue for the government than tariffs.
Answer: C
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Which of the following states the relationship between a bond's price and its yield?
a. As the price falls, the yield falls. b. Price and yield are usually independent of each other. c. As the price rises, the yield rises. d. As the price rises, the yield falls. e. As the yield rises, so does the price.
Suppose that production of a good creates a negative externality. An excise tax equivalent to the difference between the marginal social cost and the marginal private cost of production can correct the inefficiency
a. True b. False
If banks demand currency (e.g., Federal Reserve Notes) from the central bank, the effect is to:
a. Increase the nation's monetary base. b. Decrease the nation's monetary base. c. Leave the monetary base unchanged. d. Increase the liabilities of the central bank. e. None of the above is true.
If Danielle sells 300 wrist bands for $0.50 each, her total revenues are
a. $150. b. $299.50. c. $300. d. $600.