Suppose the exchange rate changes so that more Japanese yen are required to buy a dollar. We could conclude that:
a. the Japanese yen has appreciated in value.
b. U.S. citizens will buy more Japanese imports.
c. Japanese will demand more U.S. exports.
d. U.S. citizens will buy less Japanese imports.
b
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Explain the difference between a tariff and a quota. What impact do tariffs and quotas have on the prices of domestic and imported goods?
What will be an ideal response?
Refer to Figure 16-6. Suppose instead of charging the monopoly price for his classes, Sensei charges the competitive price. What is the competitive price and what is the quantity demanded at this price?
A) P1, Q0 B) P0, Q1 C) P1, Q1 D) P0, Q0
Tolls for government turnpikes have features of a tax based on _____
a. the benefit principle b. the ability-to-pay principle c. the Ramsey rule d. redistribution
Suppose the income tax rate is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on all income above $70,000. Family A has income of $82,000 while Family B has
income of $37,000. What are the marginal tax rates faced by the two families? What will be an ideal response?