Which of the following is the best example of a tariff?
a. a tax placed on all small cars sold in the domestic market
b. a limit imposed on the number of small cars that can be imported from a foreign country.
c. a subsidy from the U.S. government to domestic manufacturers of small cars so they can compete more effectively with foreign producers of small cars.
d. a $100-per-car fee imposed on all small cars imported.
d
You might also like to view...
The Atlantic City Expressway is a highway that runs from outside Philadelphia to Atlantic City, New Jersey. It is notoriously congested during the summer weekends when many people are driving to the beach about the same time. The marginal private cost for a driver of driving on the Expressway includes
I. the cost of gasoline. II. the cost of increasing congestion for everyone else. A) I only B) II only C) Both I and II D) Neither I nor II
If the quantity of money demanded exceeds the quantity of money supplied, then
A) the quantity of nonmonetary assets demanded exceeds the quantity supplied. B) the quantity of nonmonetary assets supplied exceeds the quantity demanded. C) the quantity of nonmonetary assets demanded will still equal the quantity supplied, all else being equal. D) you can make no conclusions about the relative supply and demand of nonmonetary assets.
The circular flow model illustrates the crucially important idea of macroeconomics, which is that:
A. every expenditure of someone in the economy is exactly equal to the income of another. B. only two markets exist in every economy—input and output. C. income is lower when there is more spending on goods and services. D. the flow of two things in the economy—"stuff" and "money"—travel in the same direction.
Economic theory assumes that voters, politicians, and other political participants are largely motivated by
a. personal self-interest. b. altruism. c. a desire to promote the general welfare. d. a desire to promote allocative economic efficiency.