Which of the following is the best example of a tariff?
A) a $5,000 per-car fee imposed on all sports utility vehicles imported into the United States
B) a limit imposed on the number of sports utility vehicles that the United States can import from Japan
C) a tax placed on all sports utility vehicles sold in the domestic market
D) a subsidy granted by the U.S. government to domestic sports utility vehicle manufacturers so they can compete more effectively with foreign sports utility vehicle manufacturers
A
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Ron decided to sell a particular stock when he found out that many other people were selling it. This is an example of ________
A) anchoring B) signaling C) sniping D) herding
Suppose that surplus labor in a Pakistani village is used to build a medical clinic and dig several wells. This is an illustration of:
A. foreign aid. B. capital-saving investment. C. in-kind investment. D. technological advance.
A tax that distorts an economic decision always imposes an excess burden and decreases efficiency.
Answer the following statement true (T) or false (F)
A rancher raises alpaca. Once a year, he shears them and sells the raw wool to a processor who spins it into yarn. The yarn is then sold to a mill which produces and sells alpaca sweaters. In calculating GDP we would count
A. only the yarn and the sweaters. B. only the sweaters. C. the raw wool, the yarn and the sweaters. D. only the raw wool and the yarn.