If the benefits from trade are larger than the costs of trade, _____
a. a tariff should be imposed on the traded good
b. trade should be allowed
c. the domestic price of the traded good should be regulated
d. the domestic consumption of the traded good should be taxed
b
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Refer to the figure above. The deadweight cost of the tariff equals
A) $10,000. B) $25,000. C) $50,000. D) cannot be calculated without further information.
Methods of financing government spending are described by an expression called the government budget constraint, which states the following
A) the government budget deficit must equal the sum of the change in the monetary base and the change in government bonds held by the public. B) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the public. C) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the Fed. D) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the Treasury.
In the fooling model, should an expansion of aggregate demand cause fooling, the actual real wage ________ while the expected real wage ________
A) rises, rises B) rises, remains constant C) falls, falls D) falls, remains constant E) falls, rises
As opposed to general-equilibrium analysis, partial equilibrium analysis looks
A) at an equilibrium and changes to it in a single, isolated market. B) at how changes in one market effect other markets. C) at how equilibrium is determined in all markets simultaneously. D) at either price or quantity movements.