If there is something extra bad about local consumption of a product, then a tariff can be good for the country because
A. the tariff revenue is invested in the production of substitute products.
B. the tariff leads to higher domestic price for the product.
C. the tariff makes all residents richer.
D. the tariff brings down the domestic price of the product.
Answer: B
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In the above figure, which of the following is TRUE regarding the movements from point A to B and from point C to D?
I) The movement from point A to B shows that the economy has chosen to produce 100 more jets. II) The movement from point C to D shows that the economy has chosen to produce 100 more jets. III) The movement from point A to B and from point C to D have the same opportunity cost. A) I and II B) I and III C) II and III D) I, II and III
Private property was argued to be inappropriate by Marxists due to its distribution from those "who have" to those "who will have" in a fashion creating a class to itself
Indicate whether the statement is true or false
The portion of US debt owned by the public (non-Federal Reserve)
A. continues to fall. B. rose from around 6% to around 12% as a result of the Great Recession. C. dropped from the 1940s through the 1970s, spiked in the 1980s, dropped in the 1990s and early-2000, and rose in the 2010s. D. dropped to an all-time low in 2015.
An insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy. What is the term used to describe the situation above?
A) moral hazard B) adverse selection C) asymmetric information D) economic irrationality