The optimum tariff is
A) the best tariff a country can obtain via a WTO negotiated round of compromises.
B) the tariff, which maximizes the terms of trade gains.
C) the tariff, which maximizes the difference between terms of trade gains and terms of trade loses.
D) not practical for a small country due to the likelihood of retaliation.
E) not practical for a large country due to the likelihood of retaliation.
E
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If the Fed buys U.S. government securities from banks, the federal funds rate ________ and banks' reserves ________
A) does not change; increases B) falls; decrease C) rises; increase D) rises; decrease E) falls; increase
The demand curve depicts quantities demanded that have been gathered as prices have changed over time.
Answer the following statement true (T) or false (F)
Which of the following is an accurate rough translation of ceteris paribus?
a. “supporting the same idea” b. “making everything else different” c. “holding everything else constant” d. “challenging the same idea”
When there is market failure
A. Government intervention is beneficial only in the case of natural monopolies. B. A laissez-faire approach is the best policy. C. Government intervention is always beneficial. D. Government intervention is beneficial only when the marginal benefit of intervention exceeds the marginal cost.