Which of the following statements describes a basic difference in the economic effects of a tariff versus a quota?
A. A quota raises product prices, but a tariff does not.
B. A quota reduces domestic consumption of the product, but a tariff does not.
C. A tariff raises product prices, but a quota does not.
D. A tariff allows imports to increase if demand increases, whereas a quota does not.
Answer: D
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When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is appropriate to ignore that the market price includes a margin above marginal cost b. It is OK if the product on the market includes costly features your downstream division does not use c. Consider whether the product on the market is inexpensive because its quality is lower than you use d. If it is similar enough, it is justification for you producing it in-house
Which of the following is a social insurance program?
a. Medicaid b. Food stamps c. Social Security d. Temporary Assistance for Needy Families e. FDIC
Contrary to what believers in the Phillips curve would say, U.S. economic data from 1955 to 2000 show evidence of:
a. a positive relationship between the unemployment rate and inflation. b. no short-run relationship between the unemployment rate and inflation. c. increases in both unemployment and inflation rates. d. a constant rate of inflation, with changing rates of unemployment. e. a constant rate of unemployment, with changing rates of inflation.
The story The Wizard of Oz can be interpreted as an allegory about U.S. monetary policy in the late 19th century
a. True b. False Indicate whether the statement is true or false