Raising an existing tariff on grapes from Chile will:
a. increase U.S. imports of Chilean grapes
b. decrease U.S. consumption of domestically produced grapes.
c. decrease total U.S. consumption of grapes.
d. do all of the above.
c
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Use the following production possibilities frontier to answer the next question.
Which point or output-combination in the above graph could the nation produce only if it experienced economic growth?
A. combination E B. combination C C. combination F D. combination G
The jet noise assaulting the ears of a baggage handler is not an externality or spillover cost if
A) baggage handlers are required by law to wear hearing protectors. B) baggage handlers are required by their employers to wear hearing protectors. C) baggage handlers freely choose to wear hearing protectors. D) baggage handlers find the pay sufficiently attractive to stay with their jobs. E) the noise does no permanent damage to their hearing.
Explain why producers rather than consumers may be the beneficiaries of regulation. Does the evidence support this view?
Attempts to keep the economy always within a hair's breadth of full employment is called
a. shock absorption. b. lagging. c. fine tuning. d. crowding out.