Which of the following is the basis for the consumption effect of a tariff imposed on imported automobiles?
A. The net increase in the availability of the domestic automobiles for the consumers owing to higher prices
B. The net increase in the government revenue by taxing the domestic consumers who buy the imported automobiles
C. The decline in the purchase of the product due to the increase in its price
D. The net increase in the consumption of imported automobiles by the domestic consumers
Answer: C
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Goods that are very useful and highly desired are likely to be relatively expensive, no matter how scarce or abundant they are
Indicate whether the statement is true or false
Economist Jeffrey Sachs' big push theory involves:
A. a concerted effort in many areas to break the poverty trap. B. giving a one-time large amount of aid upfront, ending the need for future aid. C. developed nations concertedly pushing developing nations into following certain beneficial policies. D. developed nations pushing away less developed nations as trading partners because in general less developed nations cannot offer any benefits to developed nations.
If Argentina has a large amount of farmland and Great Britain has many factories,
a. the two nations have no reason to trade. b. Argentina will be willing to trade but Great Britain will not. c. Great Britain will be willing to trade but Argentina will not. d. the two nations will probably engage in mutually advantageous trade.
The Latin expression Ceteris paribus means:
A. everything else being equal. B. economic model. C. economists are partly right. D. partial scarcity is certain.