Suppose a U.S. government program subsidizes the production of domestic sugar producers and places a tariff (tax) on the importation of sugar from other countries. This program
a. helps the producers of sugar, but increase the opportunity cost of obtaining it.
b. promotes the production of goods that consumers value highly relative to cost.
c. creates wealth, because the government is providing the subsidies and imposing the tariffs.
d. will reduce the opportunity cost of obtaining sugar and therefore lead to lower sugar prices.
a. helps the producers of sugar, but increase the opportunity cost of obtaining it.
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a. SSI b. TANF c. EITC d. Medicaid
Most Americans would voluntarily support defense without required taxation.
Answer the following statement true (T) or false (F)
An individual deposits $12,000 in a commercial bank. The bank is required to hold 10 percent of all deposits on reserve at the regional Federal Reserve Bank. The deposit increases the loan capacity of the bank by:
A. $9,600. B. $11,000. C. $6,000. D. $10,800.