What are the main reasons for imposing a tariff?
What will be an ideal response?
There are two main reasons for imposing tariffs on imports. First the government receives tariff revenues from imports, which can be useful when revenues from income taxes and sales taxes are less effective ways of gaining government revenue. Second rent seeking by individuals in industries that would be hurt by foreign competition can influence the government to impose tariffs.
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Property rights allowing individuals to own goods, services, and factors of production are most important in:
a. socialistic economies. b. planned economies. c. capitalistic economies. d. command economies.
If the Federal Reserve Banks goal was to use open market operations to expand the economy it could move from:
A. MS1 to MS3
B. MS3 to MS2
C. MS4 to MS3
D. MS2 to MS1
A possible benefit of unions is lower turnover among workers, which in turn leads to lower training costs.
Answer the following statement true (T) or false (F)
A portion of a worker's earnings is economic rent if the worker
A. has skills that make him more productive than an unskilled worker. B. has been on the job for at least a year. C. would accept a small reduction in pay without quitting. D. was the last person hired at the going wage rate.