Tariffs
A. may be imposed either to raise revenue or to shield domestic producers from foreign competition.
B. are excise taxes on goods exported abroad.
C. are per-unit subsidies designed to promote exports.
D. are also called import quotas.
Answer: A
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The property tax exhibits a U-shaped patter with respect to income
a. True b. False
The Big Mac Index uses the price of a Big Mac in local currencies around the world as a way of testing the purchasing power parity theory. Which of the following is a partial explanation for why the PPP theory does not apply to the Big Mac Index?
a. Wages do not differ across countries b. Trade barriers, such as tariffs and quotas on beef, may distort local prices c. Taxes do not distort local prices d. Rent does not vary substantially across countries e. The Big Mac is traded internationally
Suppose A and B are complementary goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes up
a. True b. False Indicate whether the statement is true or false
In the United States, the dollar was commodity backed by:
A. gold. B. silver. C. oil. D. diamonds.