Explain why a government would impose an import tariff when domestic consumers suffer more than producers gain
What will be an ideal response?
The tariff may be a product of producer rent seeking. Each producer will gain a relatively large amount compared to the loss of each consumer. The producers may be able to coordinate their rent seeking activities. Each consumer will only lose a relatively small amount so it is unlikely that consumers will coordinate a protest to the tariff.
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The primary purpose of labor unions is to
A) ensure that workers receive adequate safety training. B) negotiate with employers about wages and working conditions. C) endorse candidates and donate money to them. D) ensure that all members earn identical incomes.
The federal spending policies of the Great Depression were clearly expansionary and helped return the U.S. economy to the low levels of unemployment experienced during the 1920s
Indicate whether the statement is true or false
Refer to the accompanying figure. Suppose that the government requires that resources be used efficiently. Which of the following would the government definitely not allow?
A. Production at point D. B. Specialization in medical care production. C. Specialization in warhead production. D. Production at any point other than C.
From 1990 to 2010, the public sector share of total output
A. Trended downward to 2000 and then upward to 2010. B. Trended upward through 2010. C. Trended downward to 2010. D. Trended upward to 2000 and then downward to 2010.