A tariff is a:
a. limit on the number of goods that can be imported.
b. tax on an imported product.
c. tax on an exported product.
d. limit on the number of goods that can be exported.
b
You might also like to view...
Which of the following is true for BOTH monopoly and a perfectly competitive firm?
A) The demand for the individual firm's product is perfectly elastic. B) Economic profits can be sustained indefinitely over time. C) The marginal revenue curve is horizontal at the market equilibrium price. D) Profits are maximized by producing at the level of output where marginal revenue is equal to marginal cost.
Monetary restraint and fiscal stimulus will
A) both lower the real rate of interest. B) both raise the real rate of interest. C) have differing effects on the real rate of interest. D) Both raise the level of output.
Consider a consumer who is searching for the lowest price for good X. The consumer knows that 75 percent of the time she will find a store charging $10 and 25 percent of the times she will find a store charging $7. The consumer will search again if her marginal cost of searching is constant and is:
A. between $1.00 and $2.25. B. strictly higher than $3. C. exactly $0. D. lower than or equal to $0.75.
Suppose that the Federal Reserve Open Market Committee adheres to the ideas expressed by ________. If the economy moves into a recession, the Fed would recommend that the federal funds target rate decrease as long as the inflation rate did not rise above
the publicly announced goal for inflation. A) the gold standard B) the monetarist school of thought C) inflation targeting D) the Taylor Rule