The effect of a tariff
A) is negligible since it applies to firms outside the nation.
B) can lead to economies of scale for firms inside the nation.
C) can lead to a monopoly when domestic firms become the sole suppliers inside the nation.
D) will be more beneficial to large firms than to small firms.
Answer: C
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Refer to the figure above. What is the absolute value of the arc elasticity of demand when the price falls from $8 to $4?
A) 2 B) 4 C) 8 D) 10
An example of a Pigovian tax would be a tax on:
A. cigarettes. B. alcohol. C. gasoline. D. All of these are examples.
(Consider This) Which of the following best explains why total compensation for U.S. workers has increased significantly over the past several decades, but take-home pay by U.S. workers has increased by much less?
A. An increased share of total compensation has gone to provide health insurance to workers. B. The share of total compensation going to retirement accounts has increased relative to all other components of compensation. C. Total compensation is measured in current dollar terms; take-home pay is measured in inflation-adjusted dollars. D. Workers are receiving a much larger share of total compensation in the form of goods and services produced by the firms that employ them.
Which of the following would NOT be an asset on a bank's balance sheet?
A. bank building B. loans outstanding C. transactions deposits D. cash in the vault