While some countries might be better off (in terms of social surplus) from the imposition of a tariff, the world overall is always worse off (in terms of social surplus) when import tariffs are imposed.
Answer the following statement true (T) or false (F)
True
Rationale: Large countries may be able to export a sufficient fraction of the burden of a tariff to raise social surplus within their countries, but restrictions on trade will always result in an overall increase in deadweight loss.
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Suppose the elasticity of demand for a product is 0 and elasticity of supply is 1. If the government imposes a tax on the product, then
A) buyers and sellers pay exactly the same share of the tax. B) buyers pay all of the tax. C) sellers pay all of the tax. D) buyers pay a smaller share of the tax than do sellers, but both buyers and sellers pay some of the tax. E) because the elasticity of demand is zero, the government collects no revenue from this tax.
The median voter theorem states that:
A. if voters have multi-peaked preferences, all of them prefer the median ideal policy. B. if voters have single-peaked preferences, none of them prefer the median ideal policy. C. if voters have single-peaked preferences, a majority of them prefer the median ideal policy to all other policies. D. if voters have multi-peaked preferences, a majority of them prefer the median of those preferences.
A long term goal of the NAFTA member countries is to integrate their economies into a single economic entity with a common currency as well as common trade policies and internal factor mobility
Indicate whether the statement is true or false
The geographic organization of the U.S. Congress into districts _____
a. sometimes encourages and sometimes discourages the representation of special interests depending upon the shape of the size of the government program b. has no relationship to the representation of special interests c. discourages the representation of special interests d. encourages the representation of special interests