Explain why the government is often more responsive to producer interests than to consumer interests when it comes to the imposition of tariffs and quotas
Government is generally more responsive to producer interests than to consumer interests. This is because the benefits of tariffs and quotas are concentrated on relatively few producers and the costs of trade restrictions are spread over relatively many consumers. Therefore, the producers will lobby the government to obtain these gains from trade restrictions, while consumers will not lobby government to keep from paying the small additional (per person) cost that results from the tariffs and quotas. Hearing little, or no, opposition from the consumers, the politicians are likely to respond to the interests of the producers.
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A tariff on imports affects foreign suppliers ____; a quota affects foreign suppliers ____
a. effectively, ineffectively b. haphazardly, carefully c. equally, capriciously d. unfairly, fairly e. unequally, unequally
Which of the following is consistent with the sticky-wage explanation of the upward-sloping SRAS curve?
A) The price level rises, the real wage falls, and the quantity demanded of labor declines. B) The price level falls, the real wage rises, and the quantity demanded of labor falls. C) The price level rises, the real wage rises, and the quantity demanded of labor falls. D) The nominal wage rises, the real wage rises, and the quantity demanded and supplied of labor rise. E) a and b
The market supply curve is calculated by:
A.) Summing the marginal cost curves of all firms. B.) Averaging the individual supply curves. C.) Summing the prices from individual supply curves. D.) Averaging the individual marginal cost curves below ATC.
Which of the following is considered to be an entrepreneur?
A. A self-employed person B. An MBA graduate hired by a firm to be its CEO C. A production-line worker D. A customer of a firm