What are some of the long-run costs of tariffs?
What will be an ideal response?
Increased rent seeking, slower innovation, possible loss of exports due to retaliation
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The term "open market operations" refers to the:
A. loan-making activities of commercial banks. B. effect of expansionary monetary policy on interest rates. C. operation of competitive markets in the banking industry as the result of deregulation. D. buying and selling of government securities by the Federal Reserve.
Joan has the following assets and liabilities:Credit card balance$1,000Cash$200Government bonds$3,000Stock$4,000Checking$1,500Car loan balance$10,000Car$15,000 Which of the following actions would decrease Joan's money demand by $200?
A. Joan writes a $200 check for cash and holds the cash. B. Joan gets a $200 cash advance on her credit card and puts the proceeds in her checking account. C. Joan sells $200 worth of stocks and puts the proceeds in her checking account. D. Joan writes a check for $200 to purchase additional shares of stock.
John has been laid off from his job because of a general downturn in the economy. John's unemployment is best classified as
A) structural. B) cyclical. C) frictional. D) full. E) avoidable.
Which of the following factors influence the appropriate value for the social rate of discount used in NPV analysis of stock externalities?
A) Expected rate of economic growth B) Extent of social risk aversion C) The society's rate of time preference D) all of the above