Briefly define a tariff and a quota. Do any of these methods restrict trade without harming domestic consumers?
What will be an ideal response?
Governments restrict trade through the use of tariffs and quotas. A tariff is a tax imposed on a good when it is imported into the nation. A quota is a limit on the amount of a good that may be imported. Both of these methods restrict trade and they both harm domestic consumers by raising the price and decreasing the quantity consumed.
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
The largest and fastest-growing category of federal government expenditures is
A) transfer payments. B) grants to state and local governments. C) interest on the national debt. D) national park spending.
Identified departures from perfect rationality include:
A. incoherent choices. B. bias towards the status quo. C. anchoring. D. All of these are identified departures from perfect rationality.
"Player drafts" of professional athletes:
A. increase the competitiveness of the labor market for professional athletes. B. reduce the profitability of professional sports franchises. C. promote monopsony in the hire of professional athletes. D. increase salaries of professional athletes.