A large country can gain from imposing a tariff on the import of a good if
A. the part of the tariff paid by the foreign exporters is greater than the losses arising from the production and consumption effects of the tariff in the domestic market
B. the tariff is high enough that the country becomes an exporter of the product.
C. the tariff drives the quantity imported to zero.
D. the tariff revenue collected by the domestic government is equal to the losses caused by the production and consumption effects of the tariff.
Answer: A
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If the demand for the finished good is elastic, the demand for the resources used to produce that good will be inelastic
Indicate whether the statement is true or false
There is widespread agreement across the political spectrum that the only way to break the cycle of poverty and welfare dependency is to
A. provide abortion on demand. B. put every able-bodied person to work. C. enact a negative income tax. D. throw everyone off welfare.
According to the shortsightedness effect, politicians tend to favor projects with:
a. long-run benefits and long-run costs. b. short-run benefits and short-run costs. c. short-run benefits and long-run costs. d. long-run benefits and short-run costs.
Suppose that you can hire a worker in one-hour increments. For hours of work up to 4, the total benefit of the worker (in dollars) is B(0) = 0, B(1) = 25, B(2) = 45, B(3) = 60, and B(4) = 70. What is the marginal benefit of the second hour of the worker's time?
A. $10 B. $20 C. $25 D. There is not enough information to answer the question.