For many years the U.S. government imposed quotas on cheap, Middle Eastern oil imports. The U.S. consumer consequently paid $3 billion more per year for oil products. A likely rationale for such a policy is
A. people in the oil industry deserved the transfer.
B. conservation.
C. one cannot be dependent on foreign supplies of so crucial a resource.
D. American oil was of higher quality and deserved a higher price.
Answer: C
You might also like to view...
By acting as a lender of last resort during a bank panic, the Federal Reserve enables banks to
A) encourage the public to borrow directly from the Fed to alleviate the panic. B) call in their loans from their customers to restore faith in the banking system. C) borrow increasingly large amounts from the Fed, which will reduce the public's faith in the banking system. D) satisfy customers' desires to withdraw money and eventually restore the public's faith in the banking system.
When every good or service is produced up to the point where the last unit provides ________, allocative efficiency occurs
A) a marginal benefit to society greater than the marginal cost of producing it B) a marginal benefit to society equal to the marginal cost of producing it C) a marginal benefit to society less than the marginal cost of producing it D) a marginal benefit to society equal to zero
Economists refer to pricing the same good at two or more different prices to two or more different consumers as
a. price differentiation b. price discrimination c. price fixing d. price collusion e. unfair pricing
Briefly explain why the federal income tax is considered a progressive tax.
What will be an ideal response?