Both tariffs and quotas lead to a decrease in imports, a decrease in domestic consumption, and an increase in domestic production
Indicate whether the statement is true or false
TRUE
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Suppose a new Dunkin' Donuts shop has opened in town. Its main competitor, Doughnut Delite, will likely
a. begin to produce more doughnuts. b. experience higher marginal costs. c. reduce its prices and production. d. make no changes in its pricing and production decisions.
How does the centrality of institutions and property rights in economic growth help to explain the predominance of rich countries in temperate climates and of poor countries in the tropics?
What will be an ideal response?
As we approach total pollution abatement
A) the marginal benefit to society declines. B) the marginal benefit to society increases. C) the marginal benefit to society increases, but at a decreasing rate. D) the marginal cost to society declines.
The Earned Income Tax Credit is an example of a
a. minimum-wage law. b. price ceiling. c. wage subsidy. d. rent subsidy.