The logic of collective action explains the persistence o f tariffs and quotas as an outcome that is driven by the asymmetry between
A. the benefits distributed across many consumers versus the concentration o f the costs in the hands of a few firms.
B. the benefits distributed across many firms versus the concentration of the costs in the hands o f a few consumers.
C . the benefit s concentrated in the hands of the few consumers, versus the costs distributed across many firms.
D. the benefits concentrated in the hands of the few firms, versus the costs distributed across many consumers.
Answer: D. the benefits concentrated in the hands of the few firms, versus the costs distributed across many consumers.
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In a single month, the Russian ruble declined some 90 percent against the dollar. In Russia, which of the following policies could have slowed this decline?
A. A reduction in the money supply B. An increase in the money supply C. A reduction in income tax rates D. An increase in income tax rates
Suppose the equilibrium price of bread is $2.00 per loaf. If the government sets a price ceiling of $2.50 per loaf: a. the price of wheat will rise and a shortage is created
b. the quantity supplied of wheat will increase. c. there will be no change in the quantity of bread demanded or supplied. d. there will be a shortage of bread.
"After every fall election, the weather starts to turn cold, therefore elections cause cold weather." This statement
a. confuses positive and normative analysis. b. commits the fallacy of composition. c. fails to recognize that association is not causation. d. confuses macroeconomics with microeconomics.
Which of the following items have been subsidized by the U.S. federal government for farmers?
A. Insurance, water, drainage, and fertilizer. B. Fertilizer but not insurance. C. Insurance but not drainage. D. Water but not fertilizer.