In equilibrium which of the following happens if the U.S. imposes tariffs on power tools?
a. U.S. net exports rise
b. the exchange rate falls
c. U.S. production of power tools rises
d. All of the above are correct.
c
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The tax wedge is the difference between the
A) amount of taxes needed to pay off the national debt and the actual amount of taxes. B) nominal and real interest rates. C) pretax and posttax returns to an economic activity. D) amount of taxes needed to balance the federal budget and the actual amount of taxes.
Refer to the accompanying table. Martha's opportunity cost of making of a pie is: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. 80 cakes. B. 8 cakes. C. 3/4 of a cake. D. 4/3 of a cake.
Which of the following trends is most likely the result of a contractionary monetary policy?
a. The demand for both bungalows and mansions rises. b. The demand for both economy motels and luxury resorts drops. c. The demand for ground chuck drops, but the demand for filet mignon rises. d. The demand for designer dresses rises, but the demand for inexpensive dresses drops.
Credit card companies that operate as intermediary firms between credit card holders and business vendors are best described as
A) platforms in a shared-input market. B) end users in a shared-input market. C) platforms in a transaction-based market. D) end users in a transaction-based market.