A country's government would like to raise the price of one its most important agricultural crops, coffee beans. Which of the following government programs will result in higher prices for coffee beans?
A) An import quota on coffee beans
B) An acreage limitation program which provides coffee bean farmers financial incentives to leave some of their acreage idle
C) An import tariff on coffee beans
D) all of the above
D
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What is a sumptuary tax? Give an explanation for how cigarette taxes could be justified as a sumptuary tax. Give an explanation for why cigarette taxation might not, in actuality, achieve the goal of sumptuary taxation
What will be an ideal response?
Empirical evidence suggests that the federal budget has remained more or less in surplus between 1990 and 2002
a. True b. False Indicate whether the statement is true or false
Real money balances
A. refer to the amounts of nominal money that individuals hold. B. are computed by deflating nominal money assets by the average price level. C. refer to the amounts of American money that an individual holds relative to gold or foreign currencies. D. are measured by currency holdings rather than holdings in checking accounts.
Which of the following is an example of the rationing function of price?
A. A firm attempting to lower its explicit costs B. Government price controls C. Switching from a Ph.D. in economics to one in finance because finance salaries are higher D. Bill Gates purchasing the Mona Lisa for $5 billion