Which of the following taxes would impose the smallest excess burden on an individual?
A. a tax on all diet beverages
B. a tax on all types of beverages, including water
C. a tax on Diet Pepsi
D. a tax on all soft drinks
Answer: B
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If quota rights accrue to foreigners, then _____.
A) the domestic economy is better off with a quota than with a tariff B) the domestic economy is worse off with a quota than with a tariff C) consumer surplus and economic welfare increase D) production costs decrease E) part of the decrease in consumer surplus is redistributed to the domestic government
Which of these partly accounts for the long-term growth in production in the U.S. economy?
a. An increase in government spending b. An increase in the availability of resources c. A reduction in federal taxes d. A gradual but consistent increase in the price level e. A general optimism about the future and the pioneering spirit of America
Which of the following resulted from the Smoot-Hawley trade bill of 1930?
A) The stock market began a steady recovery from the crash of October 1929. B) Many countries responded by imposing higher tariffs on American products, and the volume of international trade fell sharply. C) Imports decreased, while exports increased, resulting in an overall increase in GDP and tariff revenues. D) The unemployment rate, which had been rising, began to steadily decline as jobs were protected by the trade restrictions.
During Thanksgiving you participated in a pumpkin-pie eating contest. You really enjoyed the first two pies, the third one was okay, but as soon as you ate the fourth one you became ill and lost the contest. Your total utility ________ with the first three pies you ate.
A. first increased than decreased B. decreased C. stayed the same D. increased