The imposition of a tariff on imported wine will increase the domestic price of wine, decrease the quantity of wine imported, and increase the quantity of wine produced domestically
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following describes the asymmetry Moncur Olson observed in the incentives to support and oppose trade policy?
A) The benefits of those seeking protection outweigh the costs imposed by the protection. B) The benefits of protection are spread out over a large number of firms and industries, but the costs are concentrated on consumers. C) The benefits of policy are concentrated, and the costs are spread out over a large number of participants. D) The costs of protection are concentrated on a few firms, and the benefits of protection are spread out over a large number of consumers.
The longer the time period considered, the more the elasticity of supply tends to _______.
a. decrease b. remain constant c. increase d. converge to zero
Some, but not all, government economists are employed within the administrative branch of government. Which of the following government agencies employs economists outside of the administrative branch?
a. the Department of Labor b. the Department of the Treasury c. the Congressional Budget Office d. the Council of Economic Advisers
The study of how people (or firms) behave in strategic situations is called:
A. cost-benefit analysis. B. recursive analysis. C. normative economics. D. game theory.