The argument that foreign trade should be restricted to protect domestic employment and output is based on the idea that:
a. consumers are willing to pay higher prices for domestic goods.
b. producers will not exploit reduced foreign competition by charging higher prices.
c. foreign companies are more costly to deal with than domestic companies.
d. sales of imports come at the expense of domestic goods and jobs.
d
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The government can aid in reducing pollution by using a policy of cap-and-trade, which means that polluters are taxed on the amount of pollution they discharge
Indicate whether the statement is true or false
Refer to Table 26-6. Suppose the table above illustrates the values of real and potential GDP and the price level if the Fed does not vote to change their current policy to be more contractionary or expansionary
If the Fed wants to keep real GDP at its potential level in 2017, should the Fed use a contractionary or expansionary policy? Should it raise or lower its interest rate target? How should it conduct open market operations to achieve its goal?
Most changes to the tax code are in the form of loopholes that allows special interests to reduce their tax liability
a. True b. False
Economists use elasticity as a tool to measure
a. the relationship between people's attitudes and their income b. the relationship between people's willingness to supply a good and their willingness to demand that good c. people's sensitivity to changes in price or income d. the effect of changes in supply on people's willingness to demand goods e. the effect of changes in supply on the government's ability to tax